Major resistance- $1217
The major three factors that drive gold prices
US dollar Index: Slightly bearish. DXY has formed a double top around 94.37 and started to decline from that level. The index is facing minor resistance at 94.45 (10- day MA) and any break above targets 94.75/95/95.25.It has almost formed a double top around 95.70-75 and any major bullishness only above that level. (Slightly positive for gold).
USD/JPY: Trend extremely Bullish. The pair is trading higher and has broken major resistance 112..87.It hits high of 113.02 and is currently trading around 112.84. Short term trend is slightly bullish as long as support 109.77 holds . Any daily close below 109.78 confirms bearish continuation and a dip till 109/108 likely. Slightly positive for gold.
US 10 year yield : US 10 year yield is trading slightly higher and jumped almost 2% this week. 2018.It is currently trading near high. Any break above 3.129% confirms further bullishness. Slightly negative for Gold.
US 2 year yield: It hits 10 year high at 2.839%.The spread between US 10 year and 2 year has increased slightly from 20bpbs to 25bpbs.
Markets eye US fed monetary policy which is to be released today for further direction.
Gold technical
Major support $1183
Major resistance - $1217
The yellow metal has shown a minor jump of $8 from this week low of $1194 and it is currently trading around $1201.95. The trend is slightly bullish as long as support $1192 holds.
On the higher side, any break above $1210 will take the commodity till $1217/$1224/$1230.
The near term support is around $1186 and any violation below will drag the commodity down till $1180/$1172.
It is good to sell on rallies around $1206-$1207 with SL around $1214 for the TP of $1181..


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