FxWirePro: Gold lost more than $10 on rising global stock market, good to buy on dips

The major three factors that drive gold prices

 US dollar Index: Slightly bullish. DXY has recovered slightly after hitting low of 94.95.The index has formed a triple bottom around 94.95 and any break below targets 94.60/94.20. The near term intraday trend reversal level is around 95.40 and any break above targets 96/96.32/97. It should break above 97 for further bullishness. The minor support is around 95.50( Slightly negative for gold).

 USD/JPY: weak . The pair has recovered more than 80 pips from low of 111.62. The near term resistance is around 112.60 and any break above targets 113.Minor trend reversal happens if breaks convincingly below 111.50 (89- day EMA). Slightly negative for gold.

US 10 year yield : US 10 year yield is trading slightly lower after hitting multiyear high @3.25%.It is currently trading around 3.17%. Negative for Gold.

US 2 year yield: It shown a minor recovery around 2% till 2.870% .The spread between US 10 year and 2 year has increased from 22bpbs to 30bpbs.

 Gold technical

Major support $1183

Major resistance - $1217

 The yellow metal has declined more than $10after huge jump. Global stock markets has shown a massive jump especially US markets jumped more than 2% on better then expected corporate earnings.  

 On the higher side, any break above $1234 will take the commodity till$1240/$1250.It should close above $1265 for bullish continuation.

The near term support is around $1211 (23.6% fib) and any violation below will drag the commodity down till $1204/$1198.

 It is good to buy on dips around $1210 with SL around $1204 for the TP of $1230.