FxWirePro: Gold trades slightly higher on geo political tension, good to buy on dips

Major resistance- $1217

The major three factors that drive gold prices

US dollar Index: weak . DXY has shown a major decline of almost 70 pips from the high of 95.66. The index has almost formed a double top around 95.70-75 and any major bullishness only above that level. It is currently trading around 95.16. The downside capped by 23.6% fib at 94.31. Short term trend is slightly bearish as long as resistance 95.75 holds. (Slightly positive for Gold).

USDJPY: Trend slightly Bearish. The pair has declined more than 50 pips from the high of 111.74. Short term trend is slightly bearish 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 2.5% from the low of 2.829% . It is curretly trading around 2.905%. Any break above 3.0160% confirms further bullishness.

US 2 year yield: The spread between US 10 year and 2 year has reduced to 25 bpbs from 35 bpbs.

Gold technical

Major support  $1183

Major resistance - $1217

The yellow metal has jumped $10 from the low of $1189 on escalating geo political tension .It hits high of $1199 and it is currently trading around $1196.85. The trend is slightly as long as support $1183 holds.

On the higher side, any break above $1200 will take the commodity till $1208/$1217/$1224/$1230.

It is good to buy on dips around $1194-95 with SL around $1189 for the TP of $1208/$1217..