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

• Gold prices has once again declined sharply after showing a minor jump above $1300. US 10 –year bond yields jumped after hitting 1-1/2 month low at 2.74% on account of political uncertainty in Italy. The 10- year jumped form the low and hits 11- day high at 2.949%. The yellow metal hits low of $1290 and is currently trading around $1292.59.
   
• The major three factors to be watched for gold price movement are

1. US Dollar index – weak (positive for gold)
    
2. USDJPY- strong (negative for gold)
    
3. US 10 –year yield – 2.92% (7% jump) ( negative for gold)
    

• The yellow metals near term resistance at $1307 (200- day MA) and any convincing break 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 $1297-$1300 with SL around $1307 for the TP of $1280/$1269.