FxWirePro:Gold recovers slightly on short covering, good to sell on rallies

• Gold prices has halted its weakness after a one week continous selling. The yellow metal recovered slightly from low of $1282 almost $10 on account of short covering. Gold was trading weak in previous week and has declined almost $40 from the high of $1322 on account of rising US 10 year bond yield and US dollar. US 10 year bond yield has shown a minor declineof more than 2.5% from high of 3.1029%. US 10 year yield and Gold has perfect negative correlation with each other. USD/JPY has shown a minor decline on profit booking and has decliend almost 50 pips yesterday. It is currently trading around 110.89. US dollar index declined slightly from the high of 93.99. The yellow metal hits low of $1282 and is currently trading around $1289.
   
• The yellow metals near term resistance at $1297 (55-W EMA) and any break above will take the yellow metal till $1302 (Weekly Kijun-Sen)/ $1309 (34-W EMA). 
   
• On the lower side, near term support is around $1280 and any daily close below will drag the yellow metal down till $1269/$1263..

It is good to sell on rallies around $1288-90 with SL around $1297 for the TP of $1269.