Major support - $1412
Gold has shown a decline of more than $20 from the high $1433 after the ECB monetary policy meeting. It has kept its rates unchanged and is expected to announce a stimulus package like rate cut with tiering system and QE in Sep. DXY jumped nearly 40 pips after hitting a low of 97.44. It is currently trading around 97.82.
US 10 year bond yields are trading higher after hitting low of 2.01% yesterday It is currently trading around 2.068%.Major bullishness only above 2.15%.
On the flip side, $1410-$1412 will be acting as major intraday support and any convincing break below will drag the yellow metal down till $1400/$1390. Any violation below $1380 confirms bearish continuation.
The yellow metal is facing strong resistance around $1440 and any break above targets $1452. Bullish continuation only above $1452.
It is good to sell on rallies around $1421-22 with SL around $1430 for the TP of $1381.
