FxWirePro: XAU/USD downside capped by Ichimoku cloud, good to buy on dips

• Gold was consolidating yesterday in narrow range after forming a temporary top around $1274 on Aug 1st 2017. The decline in yellow metal was mainly due to better than expected U.S jobs data of Friday. Healthy jobs report for July increased strength of U.S dollar. It is currently trading around $1259.62.
   
• Markets await U.S inflation data to be released on Friday for further direction. U.S core CPI is expected to show a mild increase to 0.20% in the month of Jul from 0.1%. Any slight increase core CPI will take the Gold to higher levels.US. Dollar index has declined slightly after hitting high of 93.77 on Aug 4th 2017. Minor jump can be seen in U.S Dollar index only if it breaks above 94.03 (21- day EMA) and break above targets 95.
   
• Technically gold showing minor hurdle at $1274 high made on Aug 1st 2017 and any break above confirms bullish continuation.
   
• Gold’s near term support is around $1255 (cloud bottom) and break below will drag the commodity down till $1247 (89- day EMA)/$1243 (Jul 26th low).The yellow metal should break below $1195 for major trend reversal.
   
• On the higher side, near term resistance is around $1275 and any break above will take the commodity till $1295/$1337.

It is good to buy on dips around $1250 with SL around $1243 for the TP of $1260/$1275.