FxWirePro: Gold trades lower on easing geo political tension, good to sell on rallies

• Gold prices has shown a minor jump above $1308 and started to decline sharply from that level. US Donald Trump and Kim had a one to one meeting for 41 mins. Trump praises Kim and they have signed a document committing to work towards the complete denuclearization of the Korean peninsula. Markets eye US Fed policy meeting which is to be scheduled tomorrow. Any further rate hike will drag the gold prices further down.  US 10 –year bond yield has slightly declined after hitting of 2.99%. USDJPY recovered sharply on easing geo political tension s between US and N.Korea. The pair jumped till 110.49 and is currently trading around 110.31. The yellow metal hits high of $1311 yesterday and is currently trading around $1298.02.
   
• The major three factors to be watched for gold price movement are

1. US Dollar index – weak (positive for gold)
    
2. USDJPY- Very strong  (negative for gold)
    
3. US 10 –year yield – 2.96% (0.5% jump for the day (slightly negative for gold)
    

• The yellow metals near term resistance at $1307 (200- day MA) and any convincing close above will take the yellow metal till $1316 (55- day EMA)/ $1324 (50% fibo). 
   
• On the lower side, near term support is around $1289 and any break below will drag the yellow metal down till $1280/$.

It is good to sell on rallies around $1297-$1300 with SL around $1308 for the TP of $1280/$1269.