• Gold jumped sharply previous week almost $30 on account of weak US dollar and increase in demand in India due to festival season. The yellow metal is trading high as slightly dovish fed minutes meeting and rising geo political tensions. It is currently trading around $1301.
   
• Indian Jewelers expect a good surge in demand this week ahead of Diwali festival of light. The gold industry in India has been struggling for past month after Government announced compulsory PAN for person buying gold more than 50000 to prevent black money. But Government currently eased PMLA norms might improve the sales of Gold.
   
• US Dollar index has shown a minor recovery after hitting low of 92.75 on Friday. It is currently trading around 93.15. The pair is facing major support near 92.60 and any break below confirms minor weakness till 91.95/91.62. The near term resistance is at 93.36 (55- day EMA) and any break above will take the index to next level till 94.30/95.
   
• U.S 10 year yield has shown a minor decline on increasing geo political tension and strong bond auction.
   
• Technically gold is facing major resistance around $1309 (50% retracement of $1357 and $1260) and any break above will take the yellow metal till $1313/$1320.
   
• Gold’s near term support is around $1293 (50- day MA) and break below will drag the commodity down till $1288 (20- day MA)/ $1275 (100- day MA)/ $1262 (61.8% retracement of $1204 and $1357.90).The yellow metal should close below $1250 for major trend reversal. 
  
   It is good to buy on dips around $1284-$1286 with SL around $1276 for the TP of $1298/$1309.