FxWirePro: Gold Daily Outlook

Major resistance- $1217

The major three factors that drive gold prices

 US dollar Index: Slightly bullish. DXY has recovered sharply more than 150 pips from low of 93.84 in previous week.The index has broken major resistance at 94.68 (100- day MA) and jumped till 95.37. The next near term resistance is around 95.70-75 and any break above  targets 96.25 (negative for gold).

USD/JPY: Trend extremely Bullish. The pair has broken major resistance 113.20 and jumped till 113.96 yesterday.It hits 11- month high and is currently trading around 113.90.Minor support is around 112.50 and any break below targets 112. Short term trend is slightly bullish as long as support 112 holds . Any daily close below 112 confirms minor bearishness and a dip till 111/110.38 likely. Slightly positive for gold.

US 10 year yield : US 10 year yield has shown minor recovery of more than 1.5% from the low of 3.02% It is currently trading around 3.07%. Any break above 3.129% confirms further bullishness. Slightly negative for Gold.

US 2 year yield: It hits 10 year high at 2.835%.The spread between US 10 year and 2 year has reduced to 24bpbs from 25bpbs.

 Gold technical

Major support $1183

Major resistance - $1217

 The yellow metal has lost more than $15 from the high of $1198 and it is currently trading around $1185. The trend is slightly bearish as long as resistance $1217 holds.

 On the higher side, any break above $1210 will take the commodity till $1217/$1224/$1230.

The near term support is around $1180 and any violation below will drag the commodity down till $1170/$11620.

 It is good to sell on rallies around $1195-1197 with SL around $1205 for the TP of $1181.