Gold was trading weak for 4th consecutive week and lost nearly $40 from high of $1310. The decline in yellow metal mainly due to strong dollar and easing US –China trade tensions. US dollar index recovered sharply and jumped more than 70 pips from low of 96.79. The yellow meal hits low of $1271 and is currently trading around $1277.
US10 yield jumped more than 11% from 14 month low and hits high of 2.616%. It is currently trading around 2.562%.
On the lower side, near term major support is around $1272 (55- W EMA) and any break below will take the yellow metal down till $1260 (300- W EMA)/$1243.
The near term resistance is around $1281 (23.6% fib) and any violation above will take the gold till $1285/$1292. Any convincing break above $1292 confirms minor bullishness and a jump till $1296/$1300 possible.
It is good to sell on rallies around $1283-84 with SL $1292 for the TP of $1261.
