Gold prices have been on a roller coaster since Election day. The yellow metal tumbled from the high of $1295 till $1214. It is currently trading around $1220. Investors shift towards riskier assets after ease of politic…
Gold prices have been on a roller coaster since Election day. The yellow metal tumbled from the high of $1295 till $1214. It is currently trading around $1220.
Investors shift towards riskier assets after ease of political tensions in France and geopolitical tensions in North Korea. VIX fear index has slumped to 23 year low.
U.S 10 year bond yield rose up by 20 basis point to 2.42% yesterday from the low of 2.20% on account on rising expectations of Fed rate hike.
Technically gold is facing strong support at $1208 (50% retracement of $1122 and $1295) and any break below will drag the yellow metal down till $1200. It should break below $1195 (Mar 10th 2017 low) for further weakness.
On the higher side, near term resistance is around $1242 (100 EMA) and any break above targets $1252 (200 day MA)/ $1261 (daily Kijun-Sen).
It is good to sell on rallies around $1225 with SL around $1236 for the TP of $1219/$1209..
