FxWirePro: Gold recovers slightly after weak US CPI, good to sell on rallies

• Gold prices shown a minor jump of almost $12 from a yesterday’s low of $1310. The yellow metal remains under pressure from a strengthening U.S dollar and higher US 10 year bond yields But U.S dollar pared its gains yesterday after slightly weaker than expected US CPI data. US CPI came at 0.2% for the month of Apr compared to forecast of 0.3%. USD/JPY has declined almost more than 50 pips after the data. USD/JPY and gold has negative correlation each other. US dollar index is trading slightly weak on account of profit booking. The index hits low of 92.54 and recovered slightly from that level. It is currently trading around 92.80. It is currently trading around $1319.48.
   
• The yellow metals near term resistance at $1325 (100- day MA) and any break above will take the yellow metal till $1328 (50- day MA)/$1333/$1340. 
   
• On the lower side, near term support is around $1305 (200- day MA) and any daily close below will drag the yellow metal down till $1294/$1285.

It is good to sell on rallies around $1322-25 with SL around $1333 for the TP of $1300/$1285.