FxWirePro: Gold downside limited due to political uncertainty, good to buy on dips

• Gold has shown a minor profit booking after hitting an 11-month high as dollar pared so0me of its losses. But downside is limited due to political uncertainty. The yellow metal declined till $1307 and is currently trading around $1311.
   
• The yellow metal rose more than 1% yesterday to $1325 after North Korea fired a missile that flew over Japan. This has increased demand for safe haven assets such as Yen, Swiss franc and Gold.
   
•  DXY shown a minor recovery after hitting low of 91.62 level. Any break above 92.55 confirms minor bullishness a jump till 93.2/93.60 likely. Major trend reversal can be seen only above 94.15 level.
   
• U.S 10 year yield has fallen to post election low of 2.09 and shown a minor jump from level.
   
• Technically gold is facing major resistance around $1325 and any break above will take the yellow metal to new high at $1337 (Nov 9th 2016 high) /$1353 (161.8% retracement of $1295 and $1204.35)/$1377.50 Jul 2016 highs.
   
• Gold’s near term support is around $1296 (23.6% retracement of $1204 and $1325 and also resistance turned into support) and break below will drag the commodity down till $1275 (Aug 25th low) /$1269 (55- day EMA).The yellow metal should break below $1250 for minor trend reversal. 

It is good to buy on dips around $1305-$1307 with SL around $1290 for the TP of $1343/$1367.