FxWirePro: Gold Daily Outlook

• Gold prices trades in narrow range between $1289 and $1306.50 for the past nine trading session. US dollar index was trading slightly higher after a huge decline yesterday on account of hopes that ECB would wind up stimulus program by end of the year. US 10 –year bond yield has slightly declined after hitting of 2.98%. USDJPY also showing a minor weakness after hitting high of 110.17. The yellow metal hits high of $1302.97 and is currently trading around $1298.07.
   
• The major three factors to be watched for gold price movement are

1. US Dollar index – strong (negative for gold)
    
2. USDJPY- weak (negative for gold)
    
3. US 10 –year yield – 2.92% (3.75% decline from the low of 2.73%) ( negative for gold)
    

• The yellow metals near term resistance at $1307 (200- day MA) and any convincing break above will take the yellow metal till $1316 (55- day EMA)/ $1324 (50% fibo). 
   
• On the lower side, near term support is around $1289 and any break below will drag the yellow metal down till $1280/$.

It is good to buy on dips around $1295-$1297 with SL around $1289 for the TP of $1308/$1315.