FxWirePro: Gold Daily Outlook

Major resistance- $1217

The major three factors that drive gold prices

US dollar Index: Trend Bearish. DXY has shown a minor recovery of nearly 50 pips from the low of 94.43. The upside capped by 38.2% fib at 95.71. Short term trend is weak as long as resistance 95.71 holds. (Slightly positive for Gold).

USDJPY: Trend slightly Bearish. The pair has support near 34- day EMA and recovered almost 50 pips from the low . Any break below 110.93 confirms further bearishness. The near term resistance is around 111.48 and any break above targets 112.15.Slightly positive for gold.

US 10 year yield : It has jumped more than 1.5% from the low of 2.84% yesterday. It has jumped more than 3% from the low of 2.80%.

US 2 year yield: The spread between US 10 year and 2 year has reduced to 21 bpbs from 35 bpbs.

Gold technical

Major support  $1183

Major resistance - $1217

The yellow metal has lost nearly $15 from the high of $1214.50. It hits low of $1199.80 and t is currently trading around $1203. The trend is bullish as long as support $1183 holds.

On the higher side, any break above $1217 will take the commodity till $1224/$1230/$1238.

It is good to buy on dips around $1200 with SL around $1193 for the TP of $1217/$1224