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FxWirePro: Gold trades lower on rising US 10 year bond yield, good to sell on rallies

Gold has lost more than $10 on strong USD and rising US 10 year bond yield.

The major three factors that drive gold prices

 US dollar Index: Bullish for intraday. DXY has taken support near trend line and jumped more than 50 pips from the low of 95.68.The index jumped till 96.23 and is currently trading around 96.21.The near term resistance is around 96.40 and any break below targets 97/97.20. ( Slightly negative for gold).

USD/JPY: strong . The pair has jumped more than 70 pips from low of 112.94. It is currently trading around 113.68. The near term resistance is around 114 and any break above targets 114.55/115. Slightly negative for gold.

 

US 10 year yield : US 10 year yield has shown a recovery of more than 2% and any break above 3.25% confirms further bullishness. It is currently trading around 3.239%. Slightly negative for Gold.

 US 2 year yield: It is trading higher after hitting a fresh high of 2.97%.The spread between US 10 year and 2 year has increased from 22bpbs to 28bpbs.

Gold technical

Major support $1183

Major resistance - $1240

 The yellow metal has lost almost $13 after hitting high of $1236 on account of strong USD and US yield.On the higher side, major resistance is around $1240 and any break above $1240 will take the commodity till $1250/$1265 .It should close above $1265 (200- day MA) for bullish continuation.

The near term support is around $1221 (89- day EMA) and any violation below will drag the commodity down till $1217/$1212.

 It is good to sell on rallies around $1227-28 with SL around $1236 for the TP of $1200.

 

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