Gold is trading slightly lower after hitting high of $1230.It is currently trading around $1221.80.
The major three factors that drive gold prices
US dollar Index: Strong. DXY has shown a good recovery of more than 60 pips from low of 96.40. It is currently trading around 97.The near term resistance is around 97.08 and any break above targets 97.40/97.69. (slight negative for gold).
USD/JPY: Strong. The pair has broken major resistance of 113.25 and jumped till 114.65. USDJPY has taken support near 89 day EMA. It is currently trading around 113.46. The near term resistance is around 113.70 and any break above targets 114/114.55. Slightly negative for gold.
US 10 year yield : US 10 year yield is trading flat after hitting low of 3.02%.It faces strong support around 3.07 (89- day EMA) .Any further weakness only if it breaks convincingly below 3.07%. It is currently trading around 3.055%. neutral for Gold.
US 2 year yield: It has taken support near 89-day EMA and shown a marginal higher. The spread between US 10 year and 2 year has decreased from 30bpbs to 22 bpbs.
Gold technical
Major support $1183
Major resistance - $1240
The yellow metal has lost almost $10 from high of $1230.13.On the higher side, major resistance is around $1230 and any convincing break above $1230 will take the commodity till $1236. It should break above $1243 (Oct 26th 2018 high) for bullish continuation.
The near term support is around $1217 (55 day EMA) and any violation below will drag the commodity down till $1209/$1200.
It is good to buy on dips around $1223-24 with SL around $1217 for the TP of $1243.


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