Gold trades higher on weak US dollar, good to buy on dips : FxWirepro | March 6, 2018

Gold 0.11% is consolidating after hitting high of $1327 yesterday. The yellow metal jump was supported by increasing safe haven demand due to imposition of tariffs by Donald Trump. US dollar -0.01% has declined sharply almost more than 100 pips till 89.83 from the high of 90.93 and is trading at 90.02.

Gold 0.11% price rose sharply on Friday in response to the heightened threat of trade war. Investors are expected to buy gold 0.11% in order to hedge increasing risk from Trump’s controversial policy.

On the lower side, any break below $1299 (100- day MA) will drag the gold 0.11% down till $1287 (200- day MA). Bearish continuation only if it closes below $1287. Any violation below $1287 will drag the gold 0.11% till $1282 (233- day MA)/$1275.

The yellow metal broken major resistance at $1329 (20- day MA) and any break above will take the yellow metal till ay $1336/$1341. Overall bullish continuation only above $1366.

It is good to buy on dips around $1320 with SL around $1314 for the TP of $1330/$1336.