FxWirePro: Gold trades lower on increasing 10 –year bond yield, good to buy on dips

• Gold declined almost $10 from the high of $1229.30 made yesterday on account of rising U.S bond yields. It is currently trading around $1220.13.
   
• The U.S 10 year treasury yields rose to nearly two –month high at 2.38% and German 10 –year bund yield crossed the 0.5% first time since Jan 2016 after ECB given the hint they are gradually to remove policy accommodation in near future. Gold prices are expected to show decline in near future on increasing bond yields.
   
• Gold’s near term support is around $1217 (May 9th 2017 low) and break below will drag the commodity down till $1214/$1200/$1195. The yellow metal should break below $1180 for major trend reversal.
   
• On the higher side, in the daily chart minor resistance is around $1235 (200 day MA) and any break above will take the commodity till $1248 (89- day EMA)/$1258.

It is good to sell on rallies around $1220-$1222 with SL around $1230 for the TP of $1200/$1196.