FxWirePro: Gold consolidates in narrow range, good to sell on rallies

• Gold is consolidating in narrow range after hitting high of $1344. The yellow metal is trading in narrow range between $1344 and $1324. US dollar index has shown a muted reaction to US government shutdown. The yellow metal recovered till $1338 and is currently trading around $1331.42.
   
• US shutdown has started at midnight on Friday as vote to end shutdown was postponed until midday on Monday. The shutdown is extending for the third day and no sign of a resolution. U.S 10 –year bond yield broken major resistance 2.62% and jumped till 2.65%. The strength in US bond yields will support price of USD but this time it is decoupling with each other.
   
• The near term support is at $1327 (233- H MA) and any violation below will drag the metal to next level till $1320 (61.8% fibo)/$1313/$1308 (Jan 10th low).  Minor weakness below $1300. Any break below $1300 will drag the gold till $1287.
   
• On the higher side near term resistance is around $1352 (trend line joining $1433 and $1375) and break above targets $1357/$1375.

It is good to sell on rallies around $1330-32 with SL around $1340 for the TP of $1314/$1309.