FxWirePro: Gold consolidates in narrow range, good to sell on rallies
Gold is consolidating after showing a minor decline till $1273. The yellow metal has raised almost $25 in the previous week. But upside is capped by 10% rise in US bond yields. It is currently trading around $1276.37. US…
Gold is consolidating after showing a minor decline till $1273. The yellow metal has raised almost $25 in the previous week. But upside is capped by 10% rise in US bond yields. It is currently trading around $1276.37.
US 2- year bond yields hit a fresh 9- year high and spread between 2- year yield and US. 10 year yields contracted to 71.70 basis point.
US Dollar index has slightly declined after a minor jump till 94.64. The index is facing strong resistance at 95.20 (161.8% fibo) and any break above targets 96/96.51 level. It is currently trading around 94.48. The pair is facing major support near 94.23 (20- day MA) and any break below confirms minor weakness till 93.86 (55- day EMA)/92.60 likely.
Technically gold is facing near term resistance around $1291 (Oct 19th 2017 high and 61.8% fibo) and any break above will take the pair to next level till $1300/$1309. Minor resistance is around $1282.50 (55- day EMA).
Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250.The yellow metal should close below $1250 for major trend reversal. The minor support is around $1277/$1270.
It is good to sell on rallies around $1282-$1284 with SL around $1291 for the TP of $1262/$1250.
