Gold: 161.8% fibo and Bearish divergence
Gold prices added to recent gains and hits fresh five month high at $1295 at the time of writing on rising geopolitical tension over North Korea.
North Korea attempted to launch a missile on Sunday from Sinpo, a city on North Korea’s eastern coast but the weapon blew up almost immediately after takeoff.
U.S dollar index jumped slightly from the low of 100.01 and its upside capped by 55- day EMA. Any break above 100.67 (55- day EMA) will take the index till 101./101.35. Minor weakness can be seen only below 100 level.
On the higher side, any break above $1300 will take the yellow metal till $1306 (161.8% retracement of $1263.87 and $1195.12)/$1332.
The major near term support is around $1271 (5- day MA) and any break below will drag the yellow metal down till $1257 (200- day MA)/ $1244 (50% retracement of $1195 and $1295)/$1241 (daily Kijun-Sen).
It is good to sell on rallies around $1295-$1298 with SL around $1306 for the TP of $1272/$1260.
North Korea attempted to launch a missile on Sunday from Sinpo, a city on North Korea’s eastern coast but the weapon blew up almost immediately after takeoff.
U.S dollar index jumped slightly from the low of 100.01 and its upside capped by 55- day EMA. Any break above 100.67 (55- day EMA) will take the index till 101./101.35. Minor weakness can be seen only below 100 level.
On the higher side, any break above $1300 will take the yellow metal till $1306 (161.8% retracement of $1263.87 and $1195.12)/$1332.
The major near term support is around $1271 (5- day MA) and any break below will drag the yellow metal down till $1257 (200- day MA)/ $1244 (50% retracement of $1195 and $1295)/$1241 (daily Kijun-Sen).
It is good to sell on rallies around $1295-$1298 with SL around $1306 for the TP of $1272/$1260.
