FxWirePro: Gold Short term outlook

• Gold is trading at major resistance level and it has been in the downtrend since 2011 level. The yellow metal has made several attempts to break the downward trend line. But this time it is expected to break the trend line resistance and close above that level on account of weak US Dollar index and political tensions.
   
• Gold extended gains on Monday after weaker than expected U.S Nonfarm payroll data.
   
• Gold demand is expected to increase in India as Government fixes 3% GST rate for gold and 0.5% for rough diamonds.
   
• In the weekly chart, gold is has broken the trend line resistance at $1282 and any weekly close above confirms major trend reversal  , a jump till $1295/$1337 likely.
   
• Technically gold is facing strong support at $1256 (200  EMA) and any close below will drag the precious metal till $1246 (21-  EMA)/$1237 (89 EMA). It should break below $1195 (Mar 10th 2017 low) for further weakness.
   
• On the higher side, any close above $1295 (Apr 17th 2017) will take the commodity to next level till $1337/$1352.

It is good to buy on dips around $1278-$1280 with SL around $1256 for the TP of $1295/$1337.