FxWirePro: Gold trades below 10- day MA, good to sell on rallies

• Gold continued its losing streak for the second consecutive days on account equities strengthen and strong U.S dollar. The yellow metal declined almost $34 from the year high of $1357 made on Friday on account of easing tension in North Korea. The yellow metal hits low of $1323 at the time of writing and is currently trading around $1323.77.
   
• The yellow metal gained sharply around 1.6% previous week mainly due to concerns that North Korea was preparing to conduct missile test over the weekend. But tensions got slightly eased after North Korea failed to conduct the test.
   
•  DXY has shown a major recovery till 92.01 after hitting low of 91.01 on Friday. Any break above 93.11 confirms minor bullishness a jump till 94.15 likely. Major trend reversal can be seen only above 94.15 level. The minor resistance is around 91.82/92.27.
   
• U.S 10 year yield has shown a good recovery from 10 month low of 2.03% and is currently trading around 2.12%.
   
• Technically gold is facing minor resistance around $1337 (daily Tenken-Sen)and any break above will take the yellow metal to new year high at $1343/$1350/$1358.
   
• Gold’s near term support is around $1320 (23.6% retracement of $) and break below will drag the commodity down till $1320 (23.6% retracement of $1204 and $1358)/$1313/$1300.The yellow metal should break below $1250 for minor trend reversal. 

It is good to sell gold on rallies around $1328-$1330 with SL around $1338 for the TP of $1313/$1301..