FxWirePro: Gold Daily Outlook

Overall trend - bearish

Gold is consolidating in narrow range between $1211 and $1234.95 for past three trading session. It is currently trading around $1224. 

The major three factors to be watched for gold price movement are

1. US Dollar index – weak (positive for gold)- DXY has decliend almost more than 50 pips from yesterday’s high of $94.67.The index has formed temporary top around 95.65. It is currently trading around 94.16.
    
2. USD/JPY- weak (slightly positive for gold)- It has shown a correction of more than 80 pips from the high of 111.54 made on Jul 23rd 2018. It is trading slightly below 20- day MA and is at 110.70.
    
3. US 10 –year yield – 2.97% (jumped mpore than 6% from this month low of 2.80% (slightly negative for gold).
4. US 2 year yield  2.66% (0.45% lower). The spread between 2 year and 10 year yield (2.97%-2.66) is 33 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/$11