FxWirePro: Gold trades lower on rising US bond yield, good to sell on rallies
Gold declined after hitting 3- week high on rising US 10 –year bond yields. The yellow metal has dipped till $1273 and is currently trading around $1277. The sharp rise in 10 –year bond yield happened after Philadelphia …
Gold declined after hitting 3- week high on rising US 10 –year bond yields. The yellow metal has dipped till $1273 and is currently trading around $1277.
The sharp rise in 10 –year bond yield happened after Philadelphia Fed President Patrick Harker said he expects back to back interest rate hikes this year.
US Dollar index has recovered slightly after a dip till 94.26. The index is facing strong resistance at 95.20 (161.8% fibo) and any break above targets 96/96.51 level. It is currently trading around 94.58. The pair is facing major support near 94.23 (20- day MA) and any break below confirms minor weakness till 93.86 (55- day EMA)/92.60 likely.
Technically gold is facing near term resistance around $1291 (Oct 19th 2017 high and 61.8% fibo) and any break above will take the pair to next level till $1300/$1309. Further selling in gold can be seen only below $1260.
Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250.The yellow metal should close below $1250 for major trend reversal. The minor support is around $1277/$1270.
It is good to sell on rallies around $1282-$1284 with SL around $1291 for the TP of $1262/$1250.
