FxWirePro: Gold Daily Outlook

Overall trend - bearish

• Gold has shown a minor recovery after hitting low of $1211 on account of slight recovery in USD strength. It hits low of $1229.70 and is currently trading around $1221.85. 
  
  The major three factors to be watched for gold price movement are

1. US Dollar index – Slightly weak (positive for gold)- DXY has declined once again after hitting high of 95.65. It hits low of 94.93 and is currently trading around 95.
    
2. USDJPY- slightly weak (slightly positive for gold)- It has shown a minor correction till 112.06 and recovered from that level.
    
3. US 10 –year yield – 2.85% (lost 2.35% for the high (positive for gold).
4. US 2 year yield  2.604% (0.40% higher). The spread between 2 year and 10 year yield (2.85%-2.604%) is 25 basis point slightly increased from 23 basis point.

• The pair is facing strong support at $1209 and any break below will take the yellow metal till $1200 (61.8% fib)/$1160.
   
• The near term resistance is around $1236 and any convincing break above will take the yellow metal till $1242/$1250.
  
  It is good to sell on rallies around $1228-30 with SL around $1237 for the TP of $1201/$1165.