Gold trades well above $1300 level, good to buy on dips
Gold jumped almost $20 yesterday on account of slightly weak US dollar. The yellow metal hits high of $1325.89 after hitting low of $1305.29 yesterday. US dollar index declined almost 40 pips from the high of 92.26. It is currently trading around 91.86.
US economy has added 250k in Dec compared to forecast of 190k. The major increase in jobs addition was mainly due to service sector. It has added 222k jobs highest since Jun 2016.
According to latest commitment of traders report number of net long position has been increased by money managers for the week of Dec 19-26. The net fund position is at 305 tonnes increased 75.16 tonnes compared to previous week.
On the higher side, gold is facing strong resistance at $1325 (127.2% fibo) and any break above will take the yellow metal till $1330/$1339 (161.8% retracement).
The near term support is at $1305 (7 –day MA and 23.6% fibo) and any violation below will drag the metal to next level till $1297 (10- day MA) /$1291/$1287. Minor weakness below $1287 (100- day MA). Any break below $1287 will drag the gold till $1280/$1270.
It is good to buy on dips around $1314-$1315 with SL around $1305 for the TP of $1330/$1339.
US economy has added 250k in Dec compared to forecast of 190k. The major increase in jobs addition was mainly due to service sector. It has added 222k jobs highest since Jun 2016.
According to latest commitment of traders report number of net long position has been increased by money managers for the week of Dec 19-26. The net fund position is at 305 tonnes increased 75.16 tonnes compared to previous week.
On the higher side, gold is facing strong resistance at $1325 (127.2% fibo) and any break above will take the yellow metal till $1330/$1339 (161.8% retracement).
The near term support is at $1305 (7 –day MA and 23.6% fibo) and any violation below will drag the metal to next level till $1297 (10- day MA) /$1291/$1287. Minor weakness below $1287 (100- day MA). Any break below $1287 will drag the gold till $1280/$1270.
It is good to buy on dips around $1314-$1315 with SL around $1305 for the TP of $1330/$1339.