FxWirePro: Gold Daily Outlook

Major resistance- $1200 (20- day MA)

The major three factors that drive gold prices

US dollar Index: Trend Bearish. DXY upside capped by 38.2% fib. It hits high of 95.71 and started to decline. Intraday trend is weak as long as resistance 95.71 holds. (Slightly positive for Gold).

USDJPY: Trend Bullish.The pair jumped more than 150 pips from low of 109.77. The near term resistance is around 111.48 and any break above targets 112.15.

US 10 year yield : Trading neutral for past two days. It has declined more than 7% from the high of 3.0160% which is slightly positive for gold.

US 2 year yield: The spread between US 10 year and 2 year has reduced to 20 bpbs from 35 bpbs.

Gold technical

Major support  $1183

Major resistance - $1200 (20- day MA)

The pair has taken support at $1183 and shown a minor jump. The trend is still bearish as long as resistance $1200 (20- day MA) holds. Any convincing break above $1200 targets $1209$1218.

It is good to sell on rallies around $1192-93 with SL around $1200 for the TP of $1173/$1170.