Gold 0.43% has recovered almost $14 yesterday on increasing market’s safety concerns. The yellow metal formed a minor bottom at $1306.95 on Feb 8th 2018 and minor weakness only below that level. The commodity breaks the yesterday high of $1326.24 in Asian session. It is current trading around $1326.09.
The yellow metal recovery was mainly due to turmoil in equity market across the globe and the first indicator which represents fear of investors faster than gold 0.43% and VIX 5.04% was yen. It is trading higher for the past one week. USD/JPY’s major support stands at 108 and any break below will drag the pair till 107.20/106.75. The yen and gold 0.43% highly positive correlated with each other.
On the lower side, any break below $1305 will drag the gold 0.43% down till $1300/$1292. Bearish continuation only if it closes below $1292 level. The minor support is around $1314.
The near term resistance is around $1334.85 (10- day MA) and any break above will take the commodity till $1340/$1344 (61.8% Fibo).
It is good to buy on dips around $1322-24 with SL around $1314 for the TP of $1336/$1340.
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