FxWirePro: Gold trades flat, any convincing break above $1240 confirms further bullishness

Gold is trading in narrow range .It is trading above $1230 as global stock market sell-off supports Yellow metal.

The major three factors that drive gold prices

 US dollar Index: Neutral . DXY has halted its bullishness after 4 days of jump. The index jumped till 96.86 and started to decline from that level. It is currently trading around 96.47. The near term major resistance is around 97 and any break above targets 98/98.45 ( Slightly negative for gold).

 USD/JPY: weak . The pair has declined more than 100pips yesterday and is currently trading around 111.93. It hits low of 111.37 and further weakness cane be seen below 111.17. The near term resistance is around 112.91 (20- day MA) and any break above targets 113.48/114. Slightly positive for gold.

US 10 year yield : US 10 year yield is trading slightly weak and has lost more than 2.5% yesterday.It is currently trading around 3.075%. Slightly positive for Gold.

US 2 year yield: It is trading slightly lower after hitting fresh high at 2.925% .The spread between US 10 year and 2 year has reduced from 33bpbs to 26bpbs.

 Gold technical

Major support $1183

Major resistance - $1240

 The yellow metal is has declined almost $10 after hitting high of $1243 on account of strong USD .On the higher side, any break convincing break above $1240 will take the commodity till $1265 .It should close above $1265 for bullish continuation.

The near term support is around $1218 (89- day EMA) and any violation below will drag the commodity down till $1211/$1204.

 It is good to buy on dips around $1227-28 with SL around $1218 for the TP of $1250/$1265.