Gold trades lower on higher US 10 year bond yield, good to sell on rallies

• Gold prices recovered slightly from the 4- week low on account of escalated tensions in North Korea.  The yellow metal declined once again after hitting a high of $1298.50 on Friday. It is currently trading around $1292.85 0.32% higher.
   
• The upside is limited after Fed mentioned in their monetary policy about QE reversal will increase the long term interest rates which will be negative for gold.
   
• US Dollar index has shown a minor jump after forming a minor bottom at 91.53. The pair is struggling to close continuously above 20- day MA. The index has taken support near 223- W MA and any break below confirms minor weakness. The major near term resistance is around 92.70 and any break above will take the index to next level till 93.35.
   
• U.S 10 year yield is trading near one and half month after hawkish fed statement on Wednesday.
   
• Technically gold is facing minor resistance around $1300  and any break above will take the yellow metal till $1313 (10- day MA)/$1320/$1332 (61.8% retracement of $1357.47 and $1288).
   
• Gold’s near term support is around $1288 (50- day MA) and break below will drag the commodity down till $1280.The yellow metal should break below $1250 for major trend reversal. 

It is good to sell on rallies around $1302-$1305 with SL around $1314 for the TP of $1280/$1269.