FxWirePro: Gold trades extremely flat better avoid trading, go long only above $1217

Major resistance- $1217

The major three factors that drive gold prices

US dollar Index: weak. DXY has lost more than 50 pips after hitting high of 95 level.The major near term support is around 23.6% fib at 94.31. The index has almost formed a double top around 95.70-75 and any major bullishness only above that level. (Slightly negative for gold).

USD/JPY: Trend extremely Bullish. The pair is trading higher and has broken major resistance  112.16. it hits high of 112.42 and is currently trading around 112.36. Short term trend is slightly bullish as long as support 109.77 holds . Any daily close below 109.78 confirms bearish continuation and a dip till 109/108 likely. Slightly positive for gold.

US 10 year yield : US 10 year yield gained sharply nearly 3% yesterday. It is currently trading above 3% level. Any break above 3.129% confirms further bullishness.

US 2 year yield: It hits 10 year high at 2.78%.The spread between US 10 year and 2 year has increased slightly from 20bpbs to 25bpbs.

Gold technical

Major support $1183

Major resistance - $1217

The yellow metal is consolidating in narrow range and it is currently trading around $1200. The trend is slightly bullish as long as support $1192 holds.

 On the higher side, any break above $1214 will take the commodity till $1217/$1224/$1230.

It is good to buy on dips around $1193-94 with SL around $1185 for the TP of $1217/$1224.