FxWirePro: Gold trades weak as bond yield hits 4 year high, good to sell on rallies

• Gold has shown a minor $10 jump from low of $1322 and every minor jump is used as selling opportunity by traders. The sharp jump in US 10 year yield was the main reason for decline in yellow metal.US 10 year yield and Gold has negative correlation. The easing tension in Middle East and strong US Dollar also drag the price of yellow metal. It is currently trading around $1325.47.
   
• US 10- year bond yield hits 3% yesterday highest level since Jan 10th 2014 on account of positive US economic data and rising inflation. US dollar index is consolidating after hitting high of 91.07. It has broken trend line resistance and closed slightly above that level. It is currently trading around 90.94.
   
• The yellow metals near term resistance at $1332.50 (50- day MA) and any break above will take the yellow metal till $1338/$1344/$1348. The major bullishness only above $1365. Any break above $1365 will take the gold till $1374/$1380.
   
• On the lower side, near term support is around $1318 (100- day MA) and any break below will drag the yellow metal down till $1308/$1303 (200- day EMA).

It is good to sell on rallies around $1332 with SL around $1338 for the TP of $1322/$1319.