Gold dropped from its minor top $1964.38on surging US 10-year yield. The yellow metal lost it shines after Fed Chairman Powell hints at aggressive rate hikes. Markets eye US Non-farm payroll data for further direction.
Orders for Durable goods slipped by 2.2% in Feb compared to the forecast of 0.5%. The number of people who have filed for unemployment benefits decreased by 28000 to 187000 in the week ended March 19th, the lowest level since 1969.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index –Bearish (positive for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1940, violation below targets $1922/$1910/$1895/$1877/$1850/$1800. Significant reversal only below $1750.The yellow metal faces strong resistance of $1965, any breach above will take to the next level $1977/$2000/$2020.
It is good to sell on rallies around $1949-50 with SL around $1966 for TP of $1900.
