FxWirePro: Gold trades higher on China bond worries, good to sell on rallies
Gold recovered sharply yesterday from the low of $1308. The yellow metal jumped almost $19 on account of weak U.S dollar on rumors came that China might halt or reduce U.S treasury purchase . US dollar index shows almost…
Gold recovered sharply yesterday from the low of $1308. The yellow metal jumped almost $19 on account of weak U.S dollar on rumors came that China might halt or reduce U.S treasury purchase . US dollar index shows almost 50 pips jump from the yesterday low of 91.92. The yellow metal hits high of $1327 and is currently trading around $1318.
US 10 year bond yields hits 2.55% highest level since Mar 15th and US 3- year note yield was 2.07% highest since instrument was reissued in 2007.
On the higher side, gold is facing strong resistance at $1325 (127.2% fibo) and any break above will take the yellow metal till $1330/$1339 (161.8% retracement).
The near term support is at $1308 (55 4H EMA) and any violation below will drag the metal to next level till $1304 (23.6% fibo)/$1300 /$1288 (200- 4H EMA). Minor weakness below $1288 . Any break below $1288 will drag the gold till $1280/$1270
It is good to sell on rallies around $1318-20 with SL around $1330 for the TP of $1306/$1300.
