FxWirePro: Gold declines slightly after Trump debt ceiling deal, good to buy on dips

• mainly due to US debt ceiling. President Trump agreed to raise the debt ceiling and extend government funding till Dec 15th 2017. It is currently trading around $1335.
   
• The downside is limited as political tensions in North Korea and decrease in chance of fed rate hike will support the price.
   
•  DXY has declined after showing a jump till 93.35. Any break above 93.60 confirms minor bullishness a jump till 94.15 likely. Major trend reversal can be seen only above 94.15 level.
   
• U.S 10 year yield has shown a minor recovery from the 10- month low of 2.06% on short term debt ceiling extension by Trump. The yield is currently trading around 2.11%.
   
• Technically gold is facing major resistance around $1343 and any break above will take the yellow metal to new year high at 1353 (161.8% retracement of $1295 and $1204.35)/$1377.50 Jul 2016 highs.
   
• Gold’s near term support is around $1324 (7- day MA) and break below will drag the commodity down till $1316/1310 (10-day MA)/ $1296/ $1275 (Aug 25th low) /$1269 (55- day EMA).The yellow metal should break below $1250 for minor trend reversal. 

It is good to buy gold on dips around $1323-25 with SL around $1316 for the TP of $1340/$1350.