FxWirePro: Gold trades lower on strong dollar, good to sell on rallies

Major resistance- $1217

The major three factors that drive gold prices

US dollar Index: Trend bullish. DXY has shown a good recovery of nearly 80 pips from the low of 94.43. The downside capped by 23.6% fib at 94.31. Short term trend is slightly bullish as long as support 94.31 holds. (Slightly negative for Gold).

USDJPY: Trend slightly Bearish. The pair has declined more than 100 pips from the high of 111.82.Short term trend is weak as long as resistance 112.15 holds.Any daily close below 109.78 confirms bearish continuation and a dip till 109/108 likely. Slightly positive for gold.

US 10 year yield : It has jumped more than 1% from the low of 2.83% yesterday. It has jumped more than 7.25% from the high of 3.016%.

US 2 year yield: The spread between US 10 year and 2 year has reduced to 22 bpbs from 35 bpbs.

Gold technical

Major support  $1183

Major resistance - $1217

The yellow metal has lost nearly $15 from the high of $1214.50. It hits low of $1195 and t is currently trading around $1200.77. The trend is bearish as long as resistance $1217 holds.

On the higher side, any break above $1217 will take the commodity till $1224/$1230/$1238.

It is good to sell on rallies around $1202-04 with SL around $1215 for the TP of $1183.