FxWirePro: XAU/USD trades near 6 year trend line resistance, close above targets $1337

• Gold hits one and half month high and is trading steady on account of declining U.S dollar and weaker than expected U.S economic data. The yellow metal jumped till $1271.23 on Jul 31st 2017 and is currently trading around $1270.38.
   
• US Dollar index fell to its 16 month low on account of political uncertainty in white house. Political tensions with North Korea and Russia escalated this weekend. Euro jumped sharply yesterday against U.S dollar and hits fresh 18 month high after better than expected Core EU inflation data.
   
• Technically gold is trading near 6 year trend line resistance at $1268 and any weekly close above that level confirms further bullish continuation.
   
• Gold’s near term support is around $1253 (10- W MA) and break below will drag the commodity down till $1247 (21- day EMA)/$1241 (55- day EMA).The yellow metal should break below $1195 for major trend reversal.
   
• On the higher side, in the weekly chart major resistance is around $1268 and any close above will take the commodity till $1295/$1337.

It is good to buy on dips around $1255-$1258 with SL around $1241 for the TP of $1295/$1337.