FxWirePro: Gold Daily Outlook

Major resistance- $1217

The major three factors that drive gold prices

 US dollar Index: bullish. DXY has recovered slightly after hitting low of 95.55. The near term resistance is around 96.32 and any break above targets 97.It should break above 97 for further bullishness. (negative for gold).

 USD/JPY: Trend extremely Bullish. The pair has broken major resistance 114 and jumped till 114.54 yesterday.It hits 11- month high and is currently trading around 114.10. The pair is trading well above 200- W MA at 113.20 and any weekly close confirms further bullish continuation. Minor support is around 113.25 (10- day MA) and any break below targets 112.50/112. 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 huge jump of more than 4% yesterday and continuing its bullishness and hits multiyear high at 3.23%.It is currently trading around 3.20%. Negative for Gold.

US 2 year yield: It hits 10 year high at 2.87%.The spread between US 10 year and 2 year has increased from 22bpbs to 27bpbs.

 Gold technical

Major support $1183

Major resistance - $1217

 The yellow metal has lost more than $10 from the high of $1208 and it is currently trading around $1200 on account of strong US dollar and rising US 10-year yield. The trend is slightly bullish as long as resistance $1180 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 buy on dips around $1198 with SL around $1192 for the TP of $1217/$1225.