FxWirePro: Gold trades weak on rising US bond yields, good to sell on rallies

• Gold is declining slightly after hitting high of $1325. The yellow metal dipped almost $17 from the high on rising U.S yields. US dollar index shows almost 70 pips jump from the low of 91.75. The slight recovery in US dollar was mainly due to rise in US bond yields. The yellow metal hits low of $1308 and is currently trading around $1309.59.
   
• US 10 year bond yields hits 2.55% highest level since Mar 15th and US 3- year note yield was 2.07% highest since instrument was reissued in 2007.
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• On the higher side, gold is facing strong resistance at $1325 (127.2% fibo) and any break above will take the yellow metal till $1330/$1339 (161.8% retracement).
   
• The near term support is at $1307 (10- day MA) and any violation below will drag the metal to next level till $1304 (23.6% fibo)/$1300 /$1288 (100- day MA).  Minor weakness below $1288 (100- day MA). Any break below $1288 will drag the gold till $1280/$1270.

It is good to sell on rallies around $1313-15 with SL around $1321 for the TP of $1304/$1300.