FxWirePro: Gold Trades Higher on Easing FED Rate Hike Hopes, Good to Buy at Dips
- Gold is consolidating in a narrow range between $1248 and $1239 after a massive jump on Friday. The Bullion is currently trading at $1242 level.
- The precious metal has outperformed all other asset classes at the start of the year as a safe haven in the face of crisis.
- U.S jobs data which has been released on Friday shows that Fed unlikely to raise interest rate in the near future.
- The latest Brexit referendum polls show the leave campaign in the lead. If UK votes to leave the EU, it may be followed by France and other EU nations, which puts more pressure on Euro currency.
- Technically gold is bullish as long as support $1205 (90 week EMA) holds. Any weekly close below $1205 will drag the pair down till $1175/$1160/$1100.
- On the higher side, any break above $1251 will take the bullion till $1264/$1270/$1300.
- Gold minor support is around $1235 and any break below targets $1228/$1225.
It is good to buy at dips around $1225 with SL around $1200 for the TP of $1264/$1300