Intra day trend
Gold is trading weak and lost almost more than $30 in previous week. The main reason for fall is strong US dollar index and weak yen. The yellow metal has shown a minor decline below the low of $1237.83 made on Jul 3rd 2018 and shown a minor jump. US CPI and PPI data released previous week came better than expected .The rise in increases chance of more than 2 rate hikes this year.The yellow metal is declining amid geopolitical tensions this shows that it has lost its safe demand appeal.
The major three factors to be watched for gold price movement are
1. US Dollar index – slightly weak (positive for gold )
2.USDJPY- Slightly weak (Positive for gold )
3.US 10 –year yield – 2.83% (-0.83% for the day (Slightly positive for gold )
The pair is facing strong trend support at $1236 and any break below will take the yellow metal till $1230/$1217 (61.8% fib).
The near term resistance is around $1247.80 (55-144 min ) and any convincing break above will take the yellow metal till $1258 (200- 144 min-MA)/$1266.
It is good to buy on dips around $1242-44 with SL around $1236 for the TP of $1258.