2017.05.2900:58:00UTC+00Fxwirepro: Gold Trades Slightly Above 61.8% Fibo, Jump Till $1278 Likely

• Gold prices has recovered almost $40 from the low of $1226.75 made previous week and hits four week high on political uncertainty in U.S and is currently trading around $1265.
   
• The upside is limited for gold as U.S dollar index shown a minor recovery in the previous week after hitting low of 96.80.The index should close above 89 W EMA at 97.45 for further jump till 98.60.
   
• In the daily chart the yellow metal has formed golden cross over 50-day moving average rose above its 200-day moving average and this confirms bullish signal. Any minor weakness can be seen if it closes below 200 – day MA.
   
• Technically gold is facing strong support at $1245 (200- day MA) and any break below will drag the precious metal till $1240 (89 – EMA)/$1233 (61.8% retracement of $1195 and $1264.93). It should break below $1195 (Mar 10th 2017 low) for further weakness.
   
• On the higher side, any close above $1265 (61.8% retracement of $1295 and 1214) will take the commodity to next level till $1278 (61.8% retracement of $1375 and $1122)/$1295.

It is good to buy on dips around $1260 with SL around $1253 for the TP of /$1278.