FxWirePro: Gold faces strong resistance at 55-day EMA, break above targets $1300

US Dollar Index -Trend Negative.US Dolalr index continues to trade lower for 3rd consecutive day.It has lost more than 80 pips. Any break below 97.36 confirms further weakness and a decline till 97 possible.

US 10 year yield- Overall trend negative. It has declined once again nearly 4% yesterday and hits lowest level since Dec 2017.

S&P500: Short term trend -Slightly negative .It has shown a minor jump from low of 2805 till 2841. Any break below 2800 confirms bearish continuation.  

Gold is consolidating after showing a minor recovery of more than $15 from low of $1269.50 on weakness in stock market and slight weakness in US dollar.The yellow metal has lost more than $25 from previous week high of $1303. It hits high of $1287.27 and is currently trading around $1286.33.

On the higher side, near term resistance is around $1287 and any violation above will take the yellow metal to next level till $1292/$1300. It should break above $1304 for further direction.

The near term support is around $1276 and any break below confirms major weakness a dip till $1269/$1266. Any major weakness only below $1266.

It is good to buy on dips around $1277-78 with SL around $1270 for the TP of $1292/$1300.