Gold recovers slightly after hitting 2-1/2 week low on account of short covering. The upside is capped on account rising US 10 year bond yield. The yellow metal hits high of $1280.95 and is currently trading around $1279…
Gold recovers slightly after hitting 2-1/2 week low on account of short covering. The upside is capped on account rising US 10 year bond yield. The yellow metal hits high of $1280.95 and is currently trading around $1279.80.
US 2 –year yield hits high of 1.6230 highest level since 2008 and 10 –year yield rose till 2.475% 6- months high. On account of better than expected US durable goods order.
US Dollar index has declined slightly after hitting high of 94.02.The index is facing strong resistance at 94.27 and any further bullishness can be seen only above that level. It is currently trading around 93.50. The pair is facing major support near 93.40 and any break below confirms minor weakness till 93/92.60 likely. The near term resistance is at 94.29 and any convincing break above will take the index to next level till 95/96.
Markets await ECB monetary policy meeting today for further direction. The investor expects ECB to halve its assets purchase of 30bn euro per month from the end of the year.
Technically gold has shown a minor jump above 100- day MA and further bullish continuation can be seen only above $1287 (55- day EMA) and any break above will take the yellow metal till $1291/$1300.
Gold’s near term support is around $1269 (trend line support) and break below will drag the commodity down till $1262 (61.8% retracement of $1204 and $1357.90).The yellow metal should close below $1250 for major trend reversal.
It is good to sell on rallies around $1283-85 with SL around $1290 for the TP of $1262.
