Gold is trading slightly higher after a $25 selling from high on rising US 10 year bond yield.
The major three factors that drive gold prices
US dollar Index: Bearish for intraday. DXY has lost 100 pips after a minor jump above 97level.The index jumped till 97.20 and is currently trading around 96.30.The near term support is around 95.90 (20- day MA) and any break below targets 95.40/94.79. ( Slightly positive for gold).
USD/JPY: weak . The pair has gained more than 50 pips from low of 112.56 made yesterday. It is currently trading around 113. The near term resistance is around 113.47 (61.8% fib) and any break above targets 114/114.55. Slightly negative for gold.
US 10 year yield : US 10 year yield is trading higher and jumped more than 1.5% from yesterday’s low of 3.12%.It is currently trading around 3.17%. Slightly negative for Gold.
US 2 year yield: It is trading slightly higher after hitting low of 2.782%.The spread between US 10 year and 2 year has increased from 22bpbs to 30bpbs.
Markets eye US Non Farm Payroll data for further direction. US economy is expected to add 194000 jobs in the month of Oct compared to 134000 in previous month.
Gold technical
Major support $1183
Major resistance - $1240
The yellow metal has jumped almost $25 after hitting low of $1213 on account of slightly weak USD.On the higher side, major resistance is around $1240 and any break above $1240 will take the commodity till $1250/$1265 .It should close above $1265 (200- day MA) for bullish continuation.
The near term support is around $1224 (20- day MA) and any violation below will drag the commodity down till $1217/$1212.
It is good to buy on dips around $1225-27 with SL around $1218 for the TP of $1250/$1265.


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