Gold is trading flat on account as US markets shut for Thanksgiving day .It is currently trading around $1227.
The major three factors that drive gold prices
US dollar Index: slight weak. DXY has lost nearly 40 pips from yesterday’s high of 96.72. It is currently trading around 96.45.The near term support is around 96 and any break below targets 95.52/94.80. (slight positive for gold).
USD/JPY: Strong. The pair has declined slightly nearly 30 pips from high of 113.21. USDJPY has taken support near 89 day EMA. It is currently trading around 112.93. The near term resistance is around 113.25 and any break above targets 113.50/114. Slightly negative for gold.
US 10 year yield : US 10 year yield is trading flat after hitting low of 3.03%.It faces strong support around 3.07 (89- day EMA) .Any further weakness only if it breaks convincingly below 3.07%. It is currently trading around 3.064%. neutral for Gold.
US 2 year yield: It has taken support near 89-day EMA and shown a marginal higher. The spread between US 10 year and 2 year has decreased from 30bpbs to 25 bpbs.
Gold technical
Major support $1183
Major resistance - $1240
The yellow metal is consolidating in narrow range between $1224.94 and $1229.13.On the higher side, major resistance is around $1230 and any convincing break above $1230 will take the commodity till $1236 .It should break above $1243 (Oct 26th 2018 high) for bullish continuation.
The near term support is around $1217 (55 day EMA) and any violation below will drag the commodity down till $1209/$1200.
It is good to buy on dips around $1223-24 with SL around $1217 for the TP of $1243.


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