FxWirePro: Gold trades lower on rising US 10-year yield, good to sell on rallies
Gold prices has once again declined sharply after showing a minor jump above $1300. US economy has added 223k jobs in the month of May compared to forecast of 189k and unemployment rate dropped to 18- year low at 3.8%. U…
Gold prices has once again declined sharply after showing a minor jump above $1300. US economy has added 223k jobs in the month of May compared to forecast of 189k and unemployment rate dropped to 18- year low at 3.8%. US average hourly earnings rose by 0.3% last month compared to forecast of 0.2%. US 10 year yield has shown a good jump of almost 170 basis point from previous week low. The yellow metal hits low of $1290 and is currently trading around $1293.
The major three factors to be watched for gold price movement are
US Dollar index – weak (positive for gold)
USDJPY- strong (negative for gold)
US 10 –year yield – 2.88% (5% jump) (Slightly negative for gold)
The yellow metals near term resistance at $1307 (200- day MA) and any convincing break above will take the yellow metal till $1316 (55- day EMA)/ $1324 (50% fibo).
On the lower side, near term support is around $1289 and any break below will drag the yellow metal down till $1280/$.
It is good to sell on rallies $1297-$1300 with SL around $1307 for the TP of $1280/$1269.
