Gold is trading lower for third consecutive day and lost more than $15 from high of $1223.
The major three factors that drive gold prices
US dollar Index: Bullish for intraday. DXY has broken major resistance 97 once again after a minor decline til 95.68.It is currently trading around 97.14.The near term resistance is around 97.20 and any break above targets 98. ( negative for gold).
USD/JPY: strong . The pair has jumped more than 350 pips from low of 111.37 and hits 5-week high at 114.08. It is currently trading around 114.04. The near term resistance is around 114.25 and any break above targets 114.55/115. Slightly negative for gold.
US 10 year yield : US 10 year yield has lost more than 2% from high of 3.25%.Any further bullishness only above 3.25%. It is currently trading around 3.18%. Slightly positive for Gold.
US 2 year yield: It is trading lower after hitting hitting fresh multi-year high at 2.98%.The spread between US 10 year and 2 year has decreased from 30bpbs to 26 bpbs.
Gold technical
Major support $1183
Major resistance - $1240
The yellow metal is trading weak on account of strong USD .On the higher side, major resistance is around $1217 (55- day EMA) and any break above $1217 will take the commodity till $1227/$1236 .It should break above $1243 (Oct 26th 2018 high) for bullish continuation.
The near term support is around $1207 and any violation below will drag the commodity down till $1200/$1190.
It is good to sell on rallies around $1215-17 with SL around $1225 for the TP of $1200.


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