FxWirePro: Gold hits three week low, good to sell on rallies
Gold prices fell 1% to a three week low on account of rising U.S stocks and increasing bond yields. The yellow metal declined till $1254 and has taken support near 200 –day MA. U.S stocks were lifted by surge in Apple sh…
Gold prices fell 1% to a three week low on account of rising U.S stocks and increasing bond yields. The yellow metal declined till $1254 and has taken support near 200 –day MA.
U.S stocks were lifted by surge in Apple shares and global equities also strengthened. Market waiting for Fed two day policy meeting and Non-Farm payroll jobs data which is to be released on Friday for further direction.
U.S 10 year bond yield jumped slightly after hitting low of 2.28% on May 1st and further movement can be seen only after fed meeting.
Gold is facing strong support around 200- day MA and any beak below will drag the commodity down till $1245 (50% retracement of $1195 and 1295)/$1241 (100- day EMA).
On the higher side, near term resistance is around $1265 (21- day EMA) and any break above targets $1280 (61.8% retracement of $1295.50 and $1254)/ $1295 (Apr 17th high)/$1300/$1318 (161.8% retracement of $1295 and $1265).
It is good to sell on rallies around $1260-$1262 with SL around $1272 for the TP of $1245/$1241.
