FxWirePro: Gold hits new 2017 high on geopolitical tensions, good to buy on dips

• Gold has broken major psychological level at $1300 and jumped sharply till $1320 on safe haven demand. The yellow metal hits fresh 2017 high on weak U.S dollar and geopolitical tensions.  It is currently trading around $1317.
   
• Geopolitical tensions to rise to new high after North Korea launches a missile over Japan. This tension increased demand for safe haven assets such as Yen, Swiss franc and Gold.
   
•  DXY is trading weak and is trading near to year low. Any break below low of 92.55 confirms further bearish continuation and a dip till 91.92/90 is likely. Minor bullishness can be seen only above 94.15 level.
   
• U.S 10 year yield trading weak and is near 7- week low at 2.16% on geopolitical tension and no proper clue of further rate hike by Fed in Jackson hole symposium
   
• Technically gold is facing major resistance around $1325 and any break above will take the yellow metal to new high at $1343.70/$1354.50 (161.8% retracement of /$1377.50 Jul 2016 highs.
   
• Gold’s near term support is around $1296 (23.6% retracement of $1204 and $1317) and break below will drag the commodity down till $1280 /$1270.The yellow metal should break below $1250 for minor trend reversal. 
   
• RSI and MACD shows overbought and slight dip can be used as buying opportunity.

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