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FxWirePro: Gold trades higher on weak US dollar, good to buy on dips

  • Gold is trading higher in Asian session following a minor bullishness yesterday. The reason for slight jump in yellow metal is due to slight weakness in US dollar. The yellow metal is showing lot of buying interest at lower levels due to trade war tensions between US- China. Markets eyes inflation data(CPI) and Fed minutes meeting for further direction.
     
  • US dollar index has declined more than 100 pips from the high of 90.59 made on Apr 5th 2018. The index hits low of 89.50.DXY should break above 90.60 for further upside.
     
  • The yellow metal is facing major resistance at $1347 and any minor bullishness only above that level. Any break above $1347 will take the gold till $1352/$1356. Overall bullish continuation only above $1362.
     
  • On the lower side, near term support is around $1338 and any break below will drag the yellow metal down till $1330/$1324/$1319.

It is good to buy on dips around $1337-38 with SL around $1330 for the TP of $1347/$1352.

 

 

 

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