FxWirePro: Gold hits 7- week low on strong US bond yields, good to sell on rallies

• Gold hits 7- week low yesterday on account of strong US dollar and rising US 10- year bond yields.  The yellow metal has made a low of $1268.22 and is currently trading around $12 0.19% lower.
   
• Euro was trading weak against US dollar after voters in Catalonia was in favor of independence from Spain. About 90% of population voted for exiting Spain. In the next several days the news from Spain will be the main catalyst for EUR/USD movements.
   
• US Dollar index has shown a major recovery and has broken major resistance at 93.67 high made on Sep 28th 2017. The pair has once taken support near 23.6% (93) and any break below confirms minor weakness. The near term resistance is at 94.15 and any break above will take the index to next level till 95.
   
• U.S 10 year yield has closed above 233 –day MA for the first time since Aug 1st 2017 at 2.30% on account rising expectations of US rate hike.
   
• Technically gold is facing minor resistance around $1278 and any break above will take the yellow metal till $1290 (55- day EMA)/$1302 (38.2% fibo).
   
• Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250 (200- day MA).The yellow metal should close below $1250 for major trend reversal. 

It is good to sell on rallies around $1275-77 with SL around $1288 for the TP of $1262/$1253.