FxWirePro: Gold trades lower on higher bond yield, good to sell on rallies
The yellow metal surged above 200 –day MA till $1271.12 and declined sharply from that level . It has closed below 200- day MA on Friday. It is currently trading around $1254. The decline in the gold prices mainly due to…
The yellow metal surged above 200 –day MA till $1271.12 and declined sharply from that level . It has closed below 200- day MA on Friday. It is currently trading around $1254.
The decline in the gold prices mainly due to rise in 10- year bond yield. The bond yield has taken support near 2.3% and jumped till 2.37%. The bond yield and gold price are inversely proportional to each other.
On the higher side, major resistance is at $1275 (161.8% retracement of $1261 and $1239.388) and any break above targets $1280/$1306(161.8% retracement of $1263.87 and $1195.12).
The major near term support is around $1250 (10- day MA) and any break below will drag the yellow metal down till $1242 (38.2% retracement of $1195 and $1271.12)/$1233 (daily Kijun-Sen)/$1228.
It is good to sell on rallies around $1257-$1259 with SL around $1271 for the TP of $1242/$1233.
