FxWirePro: Gold trades higher on weak US dollar,good to buy on dips

Major resistance- $1217

The major three factors that drive gold prices

US dollar Index: Trend Bearish. DXY upside capped by 38.2% fib. It hits high of 95.71 and declined more than 100 pips from the high. Short term trend is weak as long as resistance 95.71 holds. (Slightly positive for Gold).

USDJPY: Trend slightly Bearish. The pair has support near 34- day EMA and recovered almost 50 pips from the low . Any break below 110.93 confirms further bearishness. The near term resistance is around 111.48 and any break above targets 112.15.Slightly positive for gold.

US 10 year yield : It has jumped slightly 2% from the low of 2.80%.It has declined more than 7% from the high of 3.0160% which is slightly positive for gold.

US 2 year yield: The spread between US 10 year and 2 year has reduced to 20 bpbs from 35 bpbs.

Gold technical

Major support  $1183

Major resistance - $1217

The yellow metal is consolidating after a huge of more than $25 on Friday.The pair hits high of $1212. It is currently trading around $1209. The trend is bullish as long as support $1183 holds.

On the higher side, any break above $1217 will take the commodity till $1224/$1230/$1238.

It is good to buy on dips around $1205 with SL around $1198 for the TP of $1217/$1224