FxWirePro: Gold hits 2- month low, good to sell on rallies
Gold prices hits two month low at $1214 on account of increasing rate hike expectations and easing safe haven demand. The yellow metal shown a mild jump till $1224.74 after low of $1214. It is currently trading around $1…
Gold prices hits two month low at $1214 on account of increasing rate hike expectations and easing safe haven demand. The yellow metal shown a mild jump till $1224.74 after low of $1214. It is currently trading around $1222.
Investors shift towards riskier assets amid a slump in the VIX index to an11- year low.
U.S 10 year bond yield rose up by 3 basis point to 2.41% yesterday on rising expectations of Fed rate hike.
Technically gold is facing strong support at $1208 (50% retracement of $1122 and $1295) and any break below will drag the yellow metal down till $1200. It should break below $1195 (Mar 10th 2017 low) for further weakness.
On the higher side, near term resistance is around $1242 (100 EMA) and any break above targets $1252 (200 day MA)/ $1261 (daily Kijun-Sen).
It is good to sell on rallies around $1225 with SL around $1236 for the TP of $1219/$1209..
