Gold hits three –month high on weak US dollar,buy on dips : FxwirePro | January 2, 2018

Gold 0.41% continuing its 10th day of rally longest since 2011 and hits three-month high. The main reason for jump is due to weakness of US dollar -0.13% . US dollar index -0.13% is trading weak for the past 12 days and closed below neck line support at 92.35. It is currently trading around 92.18. The yellow metal jumped till $1307.50 and is currently trading around $1306.80.

US 10 year declining after hitting high of 2.50% on Dec 21st 2017 and is currently trading at 2.40%. The decline in bond yields also supporting gold 0.41% price.

On the higher side, gold 0.41% is facing strong resistance at $1310 ( 61.8% retracement ) and any break above will take the yellow metal till $1320/$1331. The yellow metal has closed above $1300 for two consecutive days and this confirms bullish continuation.

The near term support is at $1294 (7- day MA) and any violation below will drag the metal to next level till $1287 (100- day MA) /$1275 (50- day MA)/$1272 (daily Kijun-Sen). Minor weakness below $1260. Any break below $1260 will drag the gold 0.41% till $1243/$1236 (Dec 12th 2017 low).

It is good to buy on dips around $1298 with SL around $1287 for the TP of $1313/$1320.