Gold loses shine as Omicron fear eases, good to buy on dips

Gold halted its minor pullback and held below $1800 as Omicron fear eases. The US stock markets surged more than 1% as markets sentiment stabilized. The dollar is hovering near 96 levels; any breach below 95.75 confirms intraday weakness. The new Omicron poses a “very high” global risk and increases the chance of reinfection, according to WHO. The yellow metal hits a high of $1799.89 yesterday and is currently trading around $1789.12.

 

Factors to watch for gold price action-

Global stock market- Bullish (Negative for gold)

 

US dollar index –Bearish (Positive for gold)

 

US10-year bond yield- Bearish (positive for gold)

 

Technical:

It faces strong support at $1778, violation below targets $1760/$1740/$1700. Significant trend continuation only below $1675. The yellow metal facing strong resistance $1800, any violation above will take to the next level $1815/$1835/$1860/$1900 is possible.

 

It is good to buy on dips around $1782-83 with SL around $1770 for TP of $1835.