FxWirePro: Gold recovers slightly on escalated geopolitical tensions, good to sell on rallies

• Gold prices recovered slightly from the 4- week low on account of escalated tensions in North Korea.  The yellow metal jumped almost $10 from yesterday low. It is currently trading around $1297 0.52% higher.
   
• US President Donald Trump imposes new sanctions on North Korea on Thursday and commented that in UN that US is prepared to totally destroy North Korea. In the direct response to the Trump latest threat North Korea might test hydrogen bomb in the Pacific Ocean.
   
• US Dollar index declined sharply after showing a minor jump till 92.70. The pair is struggling to close continuously above 20- day MA. Any continuous close above 20- day MA will take the index to next level till 93.35. The major near term support is around 91 and any break below will drag the index down till 90.
   
• U.S 10 year yield hits one and half - month high at 2.28% after hawkish US Fed monetary statement and US 2 year bond yield hits high since 2008.
   
• Technically gold is facing minor resistance around $1300  and any break above will take the yellow metal till $1319 (10- day MA)/$1332 (61.8% retracement of $1357.47 and $1288)/$1343/$1350/$1358.
   
• Gold’s near term support is around $1286 (50- day MA) and break below will drag the commodity down till $1280.The yellow metal should break below $1250 for major trend reversal. 

It is good to sell on rallies around $1305-$1308 with SL around $1320 for the TP of $1280/$1269.