Gold is consolidating after hitting high of $1285.84 on Friday. The renewed tension between US and China after Trump threatened to impose further tariffs. DXY continues to trade weak for third consecutive day and trading below 20- day MA 97.43. Any convincing break below targets 97/96.75.The yellow metal hits intraday high of $1283.58 and is currently trading around $1282.91.
US 10 year yield declined more than 5% from high of 2.58% made on Friday and is currently trading around 2.48%.(Slightly positive for Gold).
On the lower side, near term support is around $1278 and any violation below will drag the yellow metal down till $1270/$1266. Any break below $1266 confirms bearish continuation.
The near term resistance is around $1286 and any break above targets $1290 (55- day EMA)/$1296/$1300.
It is good to buy on dips around $1278-79 with SL around $1273 for the TP of $1290.
