FxWirePro: Gold trades lower as risk appetite eases, good to sell on rallies
Gold prices declined after a mild recovery from the 7 – week low as safe haven demand eases after French election. The yellow metal shown a mild jump till $1236 and declined from that level. It is currently trading aroun…
Gold prices declined after a mild recovery from the 7 – week low as safe haven demand eases after French election. The yellow metal shown a mild jump till $1236 and declined from that level. It is currently trading around $1227.
U.S VIX which measures implied volatility of stocks options closed at 9.77 on Monday, lowest since Dec 1993.
U.S 10 year bond yield hits almost 6 week high after Macron won Sunday’s run-off for the French election. It rose up by 2.4 basis point to 2.38%.
Technically gold is facing strong support at $1219 (100 – day MA) and any break below will drag the yellow metal down till $1209/$1200. It should break below $1195 (Mar 10th 2017 low) for further weakness.
On the higher side, near term resistance is around $1242 (100 EMA) and any break above targets $1252 (200 day MA)/ $1261 (daily Kijun-Sen).
It is good to sell on rallies around $1232-34 with SL around $1242 for the TP of $1219/$1209..
