Major support - $1226 (21- day EMA)
Major resistance - $1262 (200- day MA)
The yellow metal hits three month high at $1251.17 yesterday on account of weakness in dollar. U.S dollar index declined slightly after Treasury secretary Mnuchin comments on long awaited tax overhaul.
He had laid out an ambitious schedule on middle class people income tax cut and simplification of business by Aug.
U.S dollar index has broken minor psychological level of 101 and declined till 100.87. The index is facing strong support 100.55 (21- day MA) and any further bearish continuation only below that level.
Gold major resistance is around $1252 (127% retracement of $1244.80 and $1216.75) and any break above targets $1262 (200-day MA)/ $1278 (61.8% retracement of $1375 and $1122) is likely.
On the lower side, minor support are around $1238 (7- day EMA) and any indicative break below targets $1226 (21- day EMA)/$1215 (daily Kijun-Sen).
It is good to buy on dips around $1245-$1247 with SL around $1238 for the TP of $1262/$1278.
Major resistance - $1262 (200- day MA)
The yellow metal hits three month high at $1251.17 yesterday on account of weakness in dollar. U.S dollar index declined slightly after Treasury secretary Mnuchin comments on long awaited tax overhaul.
He had laid out an ambitious schedule on middle class people income tax cut and simplification of business by Aug.
U.S dollar index has broken minor psychological level of 101 and declined till 100.87. The index is facing strong support 100.55 (21- day MA) and any further bearish continuation only below that level.
Gold major resistance is around $1252 (127% retracement of $1244.80 and $1216.75) and any break above targets $1262 (200-day MA)/ $1278 (61.8% retracement of $1375 and $1122) is likely.
On the lower side, minor support are around $1238 (7- day EMA) and any indicative break below targets $1226 (21- day EMA)/$1215 (daily Kijun-Sen).
It is good to buy on dips around $1245-$1247 with SL around $1238 for the TP of $1262/$1278.
