Gold struggles to break above $1300, good to buy on dips
- Gold is consolidating in narrow range after hitting high of $1299. The minor dip in gold was mainly due to strength in U.S dollar after US tax reform passes the Senate. US dollar recovered after hitting low of 1.19615 on Nov 27th 2017. The pair declined till 1.18270 yesterday and is currently trading around 1.18482. Market awaits US prelim GDP q/q data for further direction.
- US Dollar index has shown a good jump above 93 after forming a temporary bottom around 92.50 level. The near term support is around 92.50 and any break below will drag the index to next level till 92.20/91.62. It is currently trading around 93.22. The pair is facing intraday resistance around 93.47 (10- day MA) and any break above will take the index to next level till 93.80/94.25/94.60/95.
- Technically gold is facing near term resistance around $1300 and any break above will take the pair to next level till $1309/$1313/$1322.
- Gold’s near term support is around $1283 (50- day MA) and break below will drag the commodity down till $1279/$1274.The yellow metal should close below $1262 (61.8% fibo) for major trend reversal.
It is good to buy on dips around $1288-$90 with SL around $1283 for the TP of $1300/$1309.
Our chart for the call:
Source: FXWire Technicals