US Dollar index broken the previous week low of 97.10 and declined till of 96.80 level. The index is trading well below 89- W and this confirms minor weakness, a decline till 95.90 likely.
In the the yellow metal has formed golden cross over 50-day moving average rose above its 200-day moving average and this confirms signal.
Technically gold is facing strong support at $1249 (50- day MA) and any break below will drag the precious metal till $1245 (200 day MA)/$1239 (89 – ). It should break below $1195 (Mar 10th 2017 low) for further weakness.
On the higher side, near term resistance is around $1265 ( of $1295 and 1214) and any break above targets $1278 ( of $1375 and $1122)/$1295.
It is good to buy on dips around $1257 with SL around $1248 for the TP of $1265/$1278.