FxWirePro: Gold trades lower as Trump prefers Hawkish new Fed Chair, good to sell on rallies
Gold declined sharply till $1281.45 from the high of $1305.89 on account of slight strength in US dollar and on rumor that Trump favors Hawkish Taylor for Fed chairman. The yellow metal prices are supported at lower leve…
Gold declined sharply till $1281.45 from the high of $1305.89 on account of slight strength in US dollar and on rumor that Trump favors Hawkish Taylor for Fed chairman. The yellow metal prices are supported at lower level due to geo political tensions in North Korea. It is currently trading around $1284.93.
US President Donald Trump is leaning towards nominating Economist John Taylor as next Fed chairman who is more hawkish than current Chairman Janet Yellen.
US Dollar index has shown a major recovery till 93.73 after hitting low of 92.75 on Friday. It is currently trading around 93.54. The pair is facing major support near 92.60 and any break below confirms minor weakness till 91.95/91.62. The near term resistance is at 93.70 (61.8% retracement of 92.75 and 94.27) and any break above will take the index to next level till 94.30/95.
U.S 10 year yield has shown a minor dip after recovering till 2.33% and it is facing resistance at 233- day MA at 2.33% and break above will target 2.40%.
Technically gold is facing major resistance around $1300 (50- day MA) and any break above will take the yellow metal till $1309 (50% retracement of $1357 and $1260) /$1313/$1320.
Gold’s near term support is around $1280 (50% retracement of $1204.70 and $1357.40) and break below will drag the commodity down till $1275 (100- day MA)/ $1262 (61.8% retracement of $1204 and $1357.90).The yellow metal should close below $1250 for major trend reversal.
It is good to sell on rallies around $1287-$1290 with SL around $1300 for the TP of $1262.
