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2017.03.2801:57:00UTC+00Fxwirerpro: Gold Faces Strong Resistance at 200- Day Ma, Good to Buy on Dips

  • Major resistance - $1260 (200- day MA).
  • Gold gained almost 1.5% yesterday as Trump trade fades. The yellow jumped till $1261 and closed at $1253.95.It is currently trading around $1253.85.
  • DXY rebounds from the low of 98.86 made yesterday. The index should break above 99.65 for intra day bullishness. Minor trend reversal only above 100.
  • US 01 year bond yields hits almost one month low on growing doubts over Trump policy to bolster the economy. The yield breaks previous week low at 2.38% and declined till 2.35%. Short term support is around 2.31%.
  • Technically, near term resistance is at $1260 (200- day MA) and any close above will take the yellow metal till $1273 ($113% retracement of $1260 and $1194)/$1280.
  • On the lower side, $1245 (23.6% retracement of $1261.01 and $1195) will be acting as major support and any break below will drag the gold down till $1231.95 (21- day EMA)/$1224 (100- day EMA).
    It is good to buy on dips around $1253 with SL around $1243 for the TP of $1272.

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