Gold is trading higher for 3rd consecutive day and holding well above $1200 on account slight weakness in USD and minor dip in US 10 year yield.
The major three factors that drive gold prices
US dollar Index: weak for intraday. DXY has lost more than 50 pips after a minor recovery till 97.39. It is currently trading around 96.86.The near term resistance is around 97.70 and any break above targets 98. ( neutral for gold).
USD/JPY: Weak . The pair is trading slightly weak for 3rd consecutive days. USDJPY has taken support near 20-day MA at 113 It is currently trading around 113.34. The near term support is around 113 and any break below targets 112.63/112.14. Slightly positive for gold.
US 10 year yield : US 10 year yield has lost more than 5% from high of 3.25%.Any further bullishness only above 3.25%. It is currently trading around 3.11%. Slightly positive for Gold.
US 2 year yield: It is trading lower after hitting hitting fresh multi-year high at 2.98% and lost more than 5%.The spread between US 10 year and 2 year has decreased from 30bpbs to 23bpbs.
Gold technical
Major support $1183
Major resistance - $1240
The yellow metal is consolidating after hitting high of $1217. On the higher side, major resistance is around $1217 (55 day EMA) and any break above $1217 will take the commodity till $1227/$1236 .It should break above $1243 (Oct 26th 2018 high) for bullish continuation.
The near term support is around $1190 and any violation below will drag the commodity down till $1178/$1160.
It is good to buy on dips around $1206-07 with SL around $1198 for the TP of $1227.


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