• FxWirePro: Gold recovers slightly on rising geopolitical tensions, good to buy on dips

    Source: FxWire Pro - Technicals / 23 May 2018 02:01:55   America/New_York

    • Gold prices has halted its weakness after a one week continuous selling. The yellow metal recovered slightly from low of $1282 almost $10 on account of renewed geo political tensions between US and China. President Trump said that his administration has not yet reached deal with Beijing to save telecom company ZTE. In tweets Trump has mentioned that he is not satisfied with trade negotiations with China. US 10 year bond yield has shown a minor decline of more than 2.5% from high of 3.1029%. US 10 year yield and Gold has perfect negative correlation with each other. USD/JPY has shown a decline of almost 100 pips from high of 111.39 due to geo political tensions. It is currently trading around 110.48. US dollar index declined slightly till 93.29 from the high of 94.06. The yellow metal hits high of $1296 and is currently trading around $1292.
       
    • The yellow metals near term resistance at $1297 (55-W EMA) and any break above will take the yellow metal till $1301.50 (Weekly Kijun-Sen)/ $1309 (34-W EMA). 
       
    • On the lower side, near term support is around $1280 and any daily close below will drag the yellow metal down till $1269/$1263.

    It is good to buy on dips around $1288-90 with SL around $1280 for the TP of $1306/$1309.

     

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