FxWirePro: Gold trades below 21- EMA, dip till $1245 likely
Gold continued its loosing streak for third consecutive days despite a slump in dollar as investors favor risky assets such as stocks compared to gold and yen. The yellow metal declined almost $15 yesterday and is curren…
Gold continued its loosing streak for third consecutive days despite a slump in dollar as investors favor risky assets such as stocks compared to gold and yen. The yellow metal declined almost $15 yesterday and is currently trading around $1263 0.06% lower.
Gold price dropped to two weeks low as recent polls shows easy win for centric EU candidature Emmanuel Macron.
U.S 10 year bond yield shown a huge jump from the low of 2.18% and hits two week high around 2.33% on account of French first round election result.
Gold has broken major support at 21- EMA at $1266 and declined till $1261 at the time of writing. The near term support stands at $1256 (200- day MA) and any break below will dag the commodity till $1245 (50% retracement of $1195 and 1295)/$1239 (100- day EMA).
On the higher side, near term resistance is around $1284 (61.8% retracement of $1295 and $1265) and any break above targets $1295/$1300/$1313 (161.8% retracement of $1295 and $1265).
It is good to sell on rallies around $1265-$1267 with SL around $1280 for the TP of $1256/$1245.
