FxWirePro: Gold to recover on declining US 10 – year bond yield, good to buy on dips

• Gold prices was trading flat yesterday on account of US and U.K market holiday. The yellow metal has jumped slightly above 200- day AM due to political uncertainty in Italy. US and North Korea problem has been slightly easing as Trump tweeted that meeting Kim Jong Un will happen as per schedule in Singapore on Jun 12th. The other reason for decline in gold price is strong US dollar index. DXY has shown a good recovery till 94.50 from yesterday’s low of 93.86.It is currently trading around 94.29. The yellow metal hits intraday low of $1296.14 and is currently trading around $1298.38.
   
• The major three factors to be watched for gold price movement are

1. US Dollar index – strong (negative for gold)
    
2. USDJPY- Weak (positive for gold)
    
3. US 10 –year yield – 2.89 % (8% decline) (positive for gold)
    

• 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)/ $1324 (50% fibo). 
   
• On the lower side, near term support is around $1294 and any break below will drag the yellow metal down till $1285/$1280.

It is good to buy on dips around $1295-97with SL around $1290 for the TP of $1308/$1316.