Gold trades weak on dollar recovery, good to sell on rallies
Gold has declined almost more than $15 on Friday and strong dollar recovery. The yellow metal hits low of $1344 on Friday. US dollar has jumped almost 100 pips from the low of 88.25. It is current trading around $1348.60.
The yellow metal minor selling is possible on short covering in USDJPY. USD/JPY has shown a more than 100 pips recovery from the low of 105.55. The yen and gold are moving in tandem with each other on safe haven demand.
On the lower side, any break below $1341 (38.2% fibo) will drag the gold down till 1337 (20- day MA)/$1330/$1320. Bearish continuation only if it breaks below $1305 level.
The near term resistance is around $1357 and any close above will take the commodity till $1360/$1366. Overall bullish continuation only above $1366.
It is good to sell on rallies around $1351-$53 with SL around $1360 for the TP of $1330/$1324.
The yellow metal minor selling is possible on short covering in USDJPY. USD/JPY has shown a more than 100 pips recovery from the low of 105.55. The yen and gold are moving in tandem with each other on safe haven demand.
On the lower side, any break below $1341 (38.2% fibo) will drag the gold down till 1337 (20- day MA)/$1330/$1320. Bearish continuation only if it breaks below $1305 level.
The near term resistance is around $1357 and any close above will take the commodity till $1360/$1366. Overall bullish continuation only above $1366.
It is good to sell on rallies around $1351-$53 with SL around $1360 for the TP of $1330/$1324.
Trade closed: target reached:
Gold target 2 almost achieved @ $1325. Book full profit