Major weekly resistance- $1267 (100- W MA)
Gold is trading higher and has jumped more than $30 in previous week on global stock market selling.It is currently trading around $1263.70.
The major three factors that drive gold prices
US dollar Index: neutral. DXY has lost nearly 100 pips form the high after Fed and has taken support near 89-day EMA .US dollar index’s major support is around 96.06 any break below confirms further weakness and a decline till 95 is possible.It is currently trading around 96.`79. (positive for gold).
USD/JPY: weak . USDJPY has lost more than 250 pips and one of the worst performing pair in previous week.It is facing strong support around 111.08 (100-W MA) and any close below will confirm major weakness.It is currently trading around 111.38. The near term support is around 110.80 and any break below targets 109. Slightly positive for gold.
US 10 year yield : US 10 year yield is trading weak for7th consecutive week and lost nearly 15% from high of 3.25%. It is currently trading around 2.78%.positive for Gold.
US 2 year yield: It is trading around 2.658%.The spread between US 10 year and 2 year has decreased sharply to 13bpbs from 30 bpbs. The spread between 5 year and 2- year yield has inverted for the first time since 2007.
Gold technical
Major support $1183
On the higher side, major resistance is around $1267 and any convincing break above targets $1289/$1300/$1320.
The near term support is around $1255 (89-W EMA) and any violation below will drag the commodity down till $1242 (23.6% fib)/$1234 (200- W MA).
It is good to buy on dips around $1250-51 with SL around $1234 for the TP of $1300.


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