Major weekly resistance- $1267 (100- W MA)
Gold is trading higher and has broken major resistance $1267 on account of global stock market turmoil.It is currently trading around $1272.
The major three factors that drive gold prices
US dollar Index: neutral. DXY is trading flat after forming a bottom around 96.17.The index hits high of 96.96 and has lost nearly 35 pips from the high.US dollar index’s major support is around 96.06 any break below confirms further weakness and a decline till 95 is possible.It is currently trading around 96.`60. (positive for gold).
USD/JPY: weak . USDJPY has lost more than 250 pips in this week and one of the worst performing pair. It is facing strong support around 110 and any close below will confirm major weakness.It is currently trading around 110.33. positive for gold.
US 10 year yield : US 10 year yield is trading weak for 8th consecutive week and lost nearly 15% from high of 3.25%. It is currently trading around 2.73%.positive for Gold.
US 2 year yield: It is trading around 2.55%.The spread between US 10 year and 2 year has slightly increased from 13bpbs point to 18 basis point. The spread between 5 year and 2- year yield has inverted for the first time since 2007.
Gold technical
Major support $1183
On the higher side, yellow metal broken major resistance $1267 and this confirms minor trend reversal and a jump till $1289/$1300/$1320.
The near term support is around $1255 (89-W EMA) and any violation below will drag the commodity down till $1242 (23.6% fib)/$1234 (200- W MA).
It is good to buy on dips around $1260 with SL around $1250 for the TP of $1300.


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