Gold: Buy on dips : FxWirePro | November 22, 2017

• Gold 0.71% has shown a minor jump till $1284 after a massive selling on Nov 20th 2017 on account of slight weakness in US dollar -0.55% and Europe political uncertainty. The yellow metal declined almost $20 from the previous week high and is currently trading around $1282.

• Markets awaits US Fed minutes meeting for further direction. According to latest Commitment of traders ( COT ) report shows that money managers increased their net long position for second straight week. ETF investors bought 2.18 tonnes of gold 0.71% last week.

• US Dollar index -0.55% has declined slightly after hitting high of 94.17. The index is facing strong support at 93.40 (50- day MA) and any break below targets 93/92.59/92. It is currently trading around 93.89. The pair is facing intraday resistance around 94.16 (89- 4H EMA ) and any break above will take the index to next level till 95/95.15.

• Technically gold 0.71% is facing near term resistance around $1300 and any break above will take the pair to next level till $1300/$1309. Minor resistance is around $1282.50 (55- day EMA ).

• 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. The minor support is around $1277/$1270.

It is good to buy on dips around $1278--$1280 with SL around $1274 for the TP of $1290/$1300.