Gold is trading higher and holding above $1250 level. Markets eye US Fed decision for further direction.It is currently trading around $1250.72.
The major three factors that drive gold prices
US dollar Index: neutral. DXY has lost nearly 100 pips ahead of Fed monetary policy.US dollar index’s major resistance is around 97.75 (trend line resistance) and any further bullishness only above that level.It is currently trading around 96.87. (positive for gold).
USD/JPY: weak . The pair is trading weak and has taken support near trend line support .It is currently trading around 112.32. The near term support is around 112.20 and any break below targets 111.37. Slightly positive for gold.
US 10 year yield : US 10 year yield is trading weak for fourth consecutive day. It is currently trading around 2.807%.positive for Gold.
US 2 year yield: It has lost nearly 6% from high of 2.78% on Dec 13th 2018.The spread between US 10 year and 2 year has decreased sharply to 15bpbs from 30 bpbs. The spread between 5 year and 2- year yield has inverted for the first time since 2007.
Gold technical
Major support $1183
Major resistance - $1243
On the higher side, major resistance is around $1251 and any convincing break above targets $1260/$1265.
The near term support is around $1233 (20-day MA) and any violation below will drag the commodity down till $1225 (89-day EMA)/$1217.
It is good to buy on dips around $1242-43 with SL around $1236 for the TP of $1260.


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