FxWirePro: Gold trades lower on strong U.S dollar, good to buy on dips

Gold is trading lower for 3rd consecutive days after hitting a fresh 6-year high of $1452. The easing monetary policy by the Fed and ECB was the main reason for a major jump in the yellow metal. According to the CME Fed watch tool, the probability of the rate cut is 100% with a 78.6% chance of 25 bpbs and 21.4% of a 50bpbs rate cut. The yellow metal hits an intraday low of $1414 and is currently trading around $1417.44.

 US 10 year yield has formed a temporary top around 2.15% and shown a dip till 2.02%. Short term trend is still weak as long as resistance 2.15-2.16% holds.

On the flip side, near term support is around $1412 (trend line support) and any violation below will drag the yellow metal to the next level till $1400/$1380. Major weakness only below $1380.

The near term minor resistance is around $1430 and any break above will take the yellow metal to the next level till $1450/$1465/$1500.

It is good to buy on dips around $1412 with SL around $1400 for the TP of $1450.