• FxWirePro: Gold trades higher on safe haven demand, good to buy on dips

    Source: FxWire Pro - Technicals / 23 Mar 2018 03:15:00   Eastern Standard Time

    • Gold jumped almost more than $12 due to Trump’s trade tariff on China. The yellow metal hits high of $1341.49 and is currently trading at $1342.68. The main reason for jump is due to increase in safe haven demand on account of rising trade war.  DXY has declined sharply after hitting high of 89.96 yesterday and it is trading at 89.56.
    • U.S President Donald Trump announced long-promised tariffs on Chinese goods and instructed USTR to levy tariffs on 100 different types of Chinese goods today. The trade war worries has increased risk aversion and demand for safe haven asset such as yen, gold.
    • The yellow metal’s near term support is around $1334 (23.6% fibo) and any break below will drag the yellow metal till $1327 (55- H MA)/$1320. Any decline below $1320 will drag the yellow metal till $1313/$1307. Major support is around $1307 and any violation below will drag the gold down till $1303 (100- day MA)/ $1289 (200- day MA).
    • The near term resistance is around $1343 and any break above will take the yellow metal till $1348/$1355. Short term bullish continuation only above $1361.

    It is good to buy on dips $1335-36 with SL around $1329 for the TP of $1345/$1350.