FxWirePro: Gold declines sharply on strong US dollar, good to sell on rallies

• Gold prices declined sharply after making a high of $1313.40 yesterday.  The yellow metal has once again broken psychological support at $1300 and declined till $1290 on account of strong US dollar. It is currently trading around $1295 0.17% higher.
   
• Dollar was trading firm yesterday despite cautious comments from Fed Chair Janet Yellen. Traders await US President Donald Trump long awaited tax reform for further direction.
   
• US Dollar index has shown a major recovery after forming a minor bottom at 91.53 and jumped above 93 level. The pair is facing strong resistance at 93.35 and any break above will take the index to next level till 94.15. The index has taken support near 223- W MA and any break below confirms minor weakness.
   
• U.S 10 year yield rose 2 basis point after US Fed Janet Yellen repeats view of slow rate hike.
   
• Technically gold is facing minor resistance around $1320 (20- day MA) and any break above will take the yellow metal till $1332 (61.8% retracement of $1357.47 and $1288)/$1343.
   
• Gold’s near term support is around $1288 (50- day MA) and break below will drag the commodity down till $1280.The yellow metal should break below $1250 for major trend reversal. 

It is good to sell on rallies around $1302-$1304 with SL around $1311 for the TP of $1288/$1280.