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FxWirePro: Gold trades well above 200 –day ma, jump till $1258 likely

 

  • Gold jumped till $1244 on account of weak U.S dollar and falling U.S bond yields. The yellow metal formed a minor bottom around $1204 and any minor weakness can be seen only below that level. It is currently trading around $1240.
  • Gold price upside might be limited as ECB has a chance more hawkish monetary policy agenda this week. U.S bond yields shown dip after delay in Trump health care.
  • Technically gold is trading well above major resistance $1230 (200- day MA) and a follow up buying is expected.
  • CHF/JPY has 62% negative correlation with Gold. CHF/JPY has formed a minor top around 118.60 and started to decline from that level.
  • Gold’s near term support is around $1224 (10- day MA) and break below will drag the commodity down till $1207 (50% retracement of $1296 and $1122)/$1195. The yellow metal should break below $1180 for major trend reversal.
  • On the higher side, in the daily chart minor resistance is around $1243 (55- EMA) and any break above will take the commodity till $1250/$1258.

It is good to buy on dips around $1235-37 with SL around $1228 for the TP of $1250/$1258.

 

Our chart for the call

 

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