FxWirePro: Gold Daily Outlook

Overall trend - bearish

• Gold has shown a decline of more than $15 from the high of $1234.95 on account of slight bullishness in US dollar index. It hits low of $1218 and is currently trading around $1219. 
   
• The major three factors to be watched for gold price movement are

1. US Dollar index – Slightly bullish (negative for gold)- DXY has recovered more than 50 pips from the low of 94.21.The index has formed temporary top around 95.65. It is currently trading around 94.78.
    
2. USD/JPY- weak (slightly positive for gold)- It has shown a minor recovery after hitting low of 110.75 and is trading slightly above 20- day MA. It is trading around 111.40.
    
3. US 10 –year yield – 2.96% (gained 3% from the low of 2.80% (negative for gold).
    
4. US 2 year yield  2.62% (0.47% lower). The spread between 2 year and 10 year yield (2.96%-2.629) is 34 basis point slightly increased from 23 basis point.

• The pair is facing strong support at $1217 and any break below will take the yellow metal till $1209/ $1200 (61.8% fib)/$1160.
   
• The near term resistance is around $1236 (10-day MA) and any convincing break above will take the yellow metal till $1244 (20- day MA)/$1250.
• It is good to sell on rallies around $1228-30 with SL around $1237 for the TP of $1201/$1165.