FxWirePro: Gold recovers on renewed North Korea tension, good to buy on dips

• Gold halts its losing streak yesterday after hitting low of $1315.49. The yellow metal declined sharply after better than expected US CPI data. The yellow metal jumped almost $20 from the low and is currently trading around $1329.20.
   
• US Dollar index declined sharply after shown a minor jump above 20- day MA. The pair hits low of 91.98 and any further bullishness can be seen only if it closes above 20 –day MA. Any close above will take the index till 93.11/94.15.
   
• U.S 10 year yield rose for fourth consecutive day after better than expected US CPI data. It is currently trading around 2.20%.
   
• Technically gold is facing minor resistance around $1334 (10- day MA)and any break above will take the yellow metal to new year high at $1343/$1350/$1358.
   
• Gold’s near term support is around $1315 (20- day MA) and break below will drag the commodity down till $1300.The yellow metal should break below $1250 for minor trend reversal. 

It is good to buy gold on dips around $1322-$1324 with SL around $1315 for the TP of $1343/$1350.