Gold recovers on geopolitical concerns, good to sell on rallies : FxWirePro | November 7, 2017

• Gold -0.28% has shown a good pullback yesterday on geopolitical risks and rising crude oil 0.10% prices. The yellow metal jumped almost $16 on concerns over Saudi Crown Prince crackdown on corruption and arrest of number of princes and ministers. It is currently trading around $1279.

• WTI crude oil 0.10% prices hit almost two year high and is currently trading around $57.29. The tensions in Saudi and decline in US rigs count is boosting the price of oil 0.10% .

• US Dollar index 0.03% is consolidating in narrow range between 94             .40 and 95.15 for the past ten days. The index is facing strong resistance at 95.20 (161.8% fibo) and any break above targets 96/96.51 level. It is currently trading around 94             .78. The pair is facing major support near 94             .40 (10- day MA) and any break below confirms minor weakness till 93.90 (100- day MA)/93.58 (55- day EMA )/92.60 likely.

• CFTC shows that speculator have cut their net long position for a 7th straight week over Oct -1.85% 17-24.

• Technically gold -0.28% is facing near term resistance around $1285 (55- day EMA ) and any break above will take the pair to next level till $1290 (61.8% Fibo)/$1298. Overall bullish continuation can be seen if it closes above $1298 (50- day MA).

• Gold’s near term support is around $1262 ( 61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250.The yellow metal should close below $1250 for major trend reversal.

It is good to sell on rallies around $1278-$1280 with SL around $1286 for the TP of $1262/$1250.