Gold is trading flat after more than $25 from high of $1303. The decline in yellow metal was due to surge of more than 100 pips in US dollar index. The slight escalation in trade war after US President Trump blacklists Huawei is to support gold at lower levels. It hits low of $1273.50 and is currently trading around $1275.30.
US 10 year yield has shown a good recovery of more than 3% from low of 2.35% made on May 16th.Overall trend still in bearish and markets eye Fed meeting minutes for further direction.
On the higher side, near term resistance is around $1282 and any violation above will take the yellow metal to next level till $1288/$1292/$1300. It should close above $1300 for further direction.
The near term support is around $1273 and any break below will drag the yellow metal to next level till $1266. Any major weakness only below $1266.
It is good to sell on rallies around $1282-83 with SL around $1292 for the TP of $1266.
