Gold breaks slightly above 233- day MA, jump till $1275 likely
Gold recovered almost $10 on account slightly weak dollar. US tax bill has minor impact on US dollar as holiday week starts. The yellow metal jumped till $1263.69 and it is currently trading around $1262.90.
The house and senate is expected to pass the tax bill mid-week. U.S equities surged to record high on optimism of US tax bill. Market is quiet with no major indicators this week. U.S NAHB data came at 18- year high in Dec. the index rose from 69 in November to 74 in Dec. The dollar index declined slightly from high 94.03. US dollar index has shown minor jump from the previous week low of 93.28 till 94.03 and currently trading around 93.65.
On the higher side, near term resistance is around $1261.80 (233- day MA) and any break above will take the yellow metal to next level till $1269 (200- day EMA)/$1275 (55-day EMA).
The near term major support is at $1236 and any violation below will drag the metal to next level till $1232 (161.8% retracement of $1305 and $1260.45)/$1223 (88.6% retracement of $1204.70 and $1357). Overall bullish invalidation only below $1200. The minor support is around $1250/$1243.
It is good to buy above $1262 with SL around $1255 for the TP of $1275/$1280.
The house and senate is expected to pass the tax bill mid-week. U.S equities surged to record high on optimism of US tax bill. Market is quiet with no major indicators this week. U.S NAHB data came at 18- year high in Dec. the index rose from 69 in November to 74 in Dec. The dollar index declined slightly from high 94.03. US dollar index has shown minor jump from the previous week low of 93.28 till 94.03 and currently trading around 93.65.
On the higher side, near term resistance is around $1261.80 (233- day MA) and any break above will take the yellow metal to next level till $1269 (200- day EMA)/$1275 (55-day EMA).
The near term major support is at $1236 and any violation below will drag the metal to next level till $1232 (161.8% retracement of $1305 and $1260.45)/$1223 (88.6% retracement of $1204.70 and $1357). Overall bullish invalidation only below $1200. The minor support is around $1250/$1243.
It is good to buy above $1262 with SL around $1255 for the TP of $1275/$1280.
