FxWirePro: Gold recovers slightly on weak US dollar, good to sell on rallies
Gold prices has shown a minor $10 jump from yesterday’s low of $1261.14. The yellow metal has lost almost more than 3.5% from the minor top of $1283.50.The minor jump in gold was mainly due to short covering and slight w…
Gold prices has shown a minor $10 jump from yesterday’s low of $1261.14. The yellow metal has lost almost more than 3.5% from the minor top of $1283.50.The minor jump in gold was mainly due to short covering and slight weakness in USD. US Dollar index has shown a huge selling after hitting 11 month high of 95.51. The index declined almost 100 pips from the high. USDJPY is trading slightly higher after 70 pips decline yesterday. It is currently trading around 110.11. The yellow metal is currently trading around $1270.
The major three factors to be watched for gold price movement are
US Dollar index – weak (positive for gold)
USDJPY- weak (slightly positive for gold)
US 10 –year yield – 2.91% (-0.57% for the day (negative for gold)
The yellow metals near term resistance at $1307 (200- day MA) and any convincing close above will take the yellow metal till $1316 (55- day EMA)/ $1324 (50% fibo).The minor resistance is around $1285/$1293 (20- day MA).
On the lower side, near term support is around $1260 and any break below will drag the yellow metal down till $1250/$1236.
It is good to sell on rallies around $1270-72 with SL around $1278 for the TP of $1250/$1236.
