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

Gold has shown a minor recovery of more than $10 after declining nearly $50 from high of $1440. The easing geopolitical tension and strength in the US dollar are putting pressure on the yellow metal. It hits low of $1381.68 and is currently trading around $1390.30

US dollar index has shown a good recovery and has broken 20- day MA around 96.78. This confirms minor trend reversal and a jump till 97/97.40 is possible.

US 10 year yield is trading in a narrow range between 1.97% and 2.069% for the past 1-week. The near term resistance is around 2.076% (20- day MA).

Technically, near term resistance is around $1398-$1400 and any break above that level targets $1410/$1425. Major bullish continuation only above $1440.

On the flip side, near term support is around $1375 (23.6% fib) and any break below confirms minor weakness and a dip till $1367/$1360 (20-day MA) is possible.

It is good to sell on rallies around $1393-94 with SL around $1402 for the TP of $1360.