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

• Gold has shown a minor $10 declined from yesterday’s high of $1326.45. The sharp jump in US dollar index yesterday after dovish ECB policy meeting was main reason behind yellow metal. US 10 year yield has shown a minor correction after hitting high of 3.04%. It is currently trading around $1316.06.
   
• ECB President has kept its interest rates and forward guidance unchanged. Mr Draghi said that that the Governing council didn’t even discuss monetary policy as more time was needed to discuss about the slight slowdown in Eurozone growth in Q1. The change in forward guidance was expected to happen only in Jul of this year instead of Jun. US dollar index has broken major long term trend line resistance at 91.35 and a jump till 92 (200- day MA) is possible .It is currently trading around 91.64.
   
• The yellow metals near term resistance at $1327 and any break above will take the yellow metal till $1332 (50- day MA)/    $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 $119-20 with SL around $1326 for the TP of $1307/$1302.