FxWirePro: Gold recovers on safe haven demand, good to sell on rallies

• Gold prices has jumped sharply almost $15 yesterday after a one week continuous selling. The yellow metal recovered almost 2% from the low of $1282 on account of renewed geo political tensions between US and China. The gold prices was supported by Trump’s statement that he was not pleased over recent talks with China. Trump also stated that summit with North Korean leader Kim Jong Un will not take place as planned on June 12th. The global equity markets are under pressure and US and German 10 –year government bond yields edged lower. USD/JPY has shown a jump of 77 pips from low of 108.95. It is currently trading around 109.56. US dollar index has recovered slightly from the yesterday low of 93.61. The yellow metal hits high of $1306 and is currently trading around $1301.99.
   
• The yellow metals near term resistance at $1307 (200- day MA) and any convincing break above will take the yellow metal till $1316 (55- day EMA)/ $13. 
   
• On the lower side, near term support is around $1280 and any daily close below will drag the yellow metal down till $1269/$1263.

It is good to sell on rallies around $1302-03 with SL around $1308 for the TP of $1294/$1287..