FxWirePro: Gold Daily Outlook

Major resistance- $1217

The major three factors that drive gold prices

US dollar Index: Slightly bullish. DXY has recovered sharply from low of 93.95 after fed monetary policy. Major resistance is around 94.37 and any break above confirms minor trend reversal. The index is facing minor resistance at 94.40 (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 negative for gold).

USD/JPY: Trend extremely Bullish. The pair is consolidating after hitting high of 113.13 yesterday.It shows a minor decline of 112.62 and is currently trading around 112.81.Minor support is around 112.50 and any break below targets 112. 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 has lost more than 2% from the high of 3.115% It is currently trading around 3.05%. 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 reduced to 20bpbs from 25bpbs.

 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..