FxWirePro: Gold recovers slightly as safe haven demand rises on global stock market turmoil, good to buy on dips

Major resistance- $1217 (89- day EMA)

The major three factors that drive gold prices

 US dollar Index: weak. DXY has declined more than 100 pips from the high of 96.16.US dollar has shown a minor decline after Trump’s comment on Fed rate hike. The near term resistance is around 96.32 and any break above targets 97. It should break above 97 for further bullishness. The minor support is around 95.50(slightly positive for gold).

 USD/JPY: weak . The pair has declined more than 100 pips from yesterday high of 113.28. The near term support is around 112(55- day EMA) and any break below targets 111.30/110.38.Minor trend reversal happens if breaks convincingly below 112. Any daily close below 112 confirms minor bearishness and a dip till 111/110.38 likely. Slightly positive for gold.

US 10 year yield : US 10 year yield is trading slightly lower after hitting multiyear high @3.25%.It is currently trading around 3.15%. Negative for Gold.

US 2 year yield: It declines more than 3% after hitting 10-year high.The spread between US 10 year and 2 year has increased from 22bpbs to 30bpbs.

 Gold technical

Major support $1183

Major resistance - $1217

 The yellow metal has recovered more than $10 from the low of $1183. It has formed almost a double bottom around $1180 and a jump till $1217 is possible..

 On the higher side, any break above $1195 will take the commodity till $1210/$1217/$1224/$1230.

The near term support is around $1180 and any violation below will drag the commodity down till $1170/$11620.

 It is good to buy on dips around $1190 with SL around $1180 for the TP of $1217.