FxWirePro: Gold trades higher on weak US dollar, good to buy on dips

Major resistance- $1217

The major three factors that drive gold prices

US dollar Index: weak. DXY is trading weak and has broken major support 94.30 yesterday.It hits low of 93.83. The index is facing minor resistance at 94.75 and any break above targets 95./95.25.It has almost formed a double top around 95.70-75 and any major bullishness only above that level. (Slightly negative for gold).

USD/JPY: Trend extremely Bullish. The pair is trading higher and has broken major resistance  112.16. it hits high of 112.73 and is currently trading around 112.69. Short term trend is slightly bullish as long as support 109.77 holds . Any daily close below 109.78 confirms bearish continuation and a dip till 109/108 likely. Slightly positive for gold.

US 10 year yield : US 10 year yield gained sharply more than 3% this week. It is currently trading above 3% level. Any break above 3.129% confirms further bullishness.

US 2 year yield: It hits 10 year high at 2.82%.The spread between US 10 year and 2 year has increased slightly from 20bpbs to 26bpbs.

Gold technical

Major support $1183

Major resistance - $1217

 The yellow metal has jumped more than $10 and it is currently trading around $1209. The trend is slightly bullish as long as support $1192 holds.

 On the higher side, any break above $1210 will take the commodity till $1217/$1224/$1230.

 It is good to buy above $1210 with SL around $1204 for the TP of $1224/$1230.