FxWirePro: Gold Daily Outlook

Overall trend - bearish

• Gold is consolidating in narrow range between $1211 and $1234.95 for past three trading session. It is currently trading around $1224. 

The major three factors to be watched for gold price movement are

1. US Dollar index – sideways (neutral for gold)- DXY has shjown a minor dip of 30 pips after hitting high of 94.86.The index has formed temporary top around 95.65. It is currently trading around 94.63.
    
2. USD/JPY- weak (slightly positive for gold)- It has shown a minor recovery after hitting low of 110.75 and is trading slightly above 20- day MA. It is trading around 111.30.
    
3. US 10 –year yield – 2.9% (declined more than 1.5% from the low of 2.96% (slightly positive for gold).
    
4. US 2 year yield  2.64% (0.15% lower). The spread between 2 year and 10 year yield (2.93%-2.64) is 31 basis point slightly increased from 23 basis point.

• The pair is facing strong support at $1217 and any break below will take the yellow metal till $1209/ $1200 (61.8% fib)/$1160.
   
• The near term resistance is around $1236 (10-day MA) and any convincing break above will take the yellow metal till $1244 (20- day MA)/$1250.
  
  It is good to sell on rallies around $1228-30 with SL around $1237 for the TP of $1201/$1165.