Major resistance - $1248 (150- W MA)
The yellow metal hits three month high yesterday on account of rising political uncertainty . Gold made a high of $1235.92 and mildly declined from that level. It is currently trading around $1232.99.
According to latest report for the fourth straight week money managers has increased their net long position as of Jan 31st 2017.The net fund long position increased by 17% w-o-w and 61% in the year to date .But it is well below its all time high of 774 tonnes and also its long term average of 319 tonnes.
Gold major resistance is around $1248 (150- day MA) and any break above confirms major trend reversal , a jump till $1278 ( of $1375 and $1122) is likely.
On the lower side, immediate support is around $1220 (7- day ) and any indicative break below targets $1210 (10- day MA)/ $1198.
It is good to buy on dips around $1227-$1228 with SL around $1220 for the TP of $1250.