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

• Gold prices declined slightly after hitting high of $1311. The geo political tensions has been eased today after US Donald Trump and Kim 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 today. Traders expect 25bpbs hike and hawkish comment will drag the gold prices further down.  US 10 –year bond yield is trading steady after hitting of 2.99%. USDJPY recovered sharply on easing geo political tension s between US and N.Korea. The pair jumped till 110.68 and is currently trading around 110.57. The yellow metal hits high of $1311 yesterday and is currently trading around $1294.97.
   
• The major three factors to be watched for gold price movement are

1. US Dollar index – strong  (negative 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.