FxWirePro: Gold hits 3- week high on declining US yields, good to buy above $1290
Gold is trading steady at three week high on minor weakness in US dollar and uncertainty over US tax plan. The yellow metal has shown a minor jump till $1287 and is currently trading around $1284. US bond yield spread be…
Gold is trading steady at three week high on minor weakness in US dollar and uncertainty over US tax plan. The yellow metal has shown a minor jump till $1287 and is currently trading around $1284.
US bond yield spread between 2 year and 10 year at 67 basis point, lowest in nearly a decade. The 10 year yield hits two weeks low from high of 2.48.
US Dollar index has shown a minor dip after hitting high of 95.15. 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 94.84. The pair is facing major support near 94.60 (10- day MA) and any break below confirms minor weakness till 94 (20- day MA)/93.78 (55- day EMA)/92.60 likely.
Technically gold is facing near term resistance around $1290 (Oct 19th 2017 high and 61.8% fibo) and any break above will take the pair to next level till $1300/$1309. Further selling in gold can be seen only below $1260.
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 buy above $1290 with SL around $1283 for the TP of $1300/$1309.
