FxWirePro: Gold trades lower on strong US dollar, good to sell on rallies
Gold prices was trading weak in previous week and has declined almost $40 from the high of $1322 on account of rising US 10 year bond yield and US dollar. US 10 year bond yield jumped more than 6% in previous week and hi…
Gold prices was trading weak in previous week and has declined almost $40 from the high of $1322 on account of rising US 10 year bond yield and US dollar. US 10 year bond yield jumped more than 6% in previous week and hits 7- year high at 3.129%. US 10 year yield and Gold has perfect negative correlation with each other. USD/JPY is continuing its previous week bullishness and has jumped more than 50 pips in today’s Asian session. It is currently trading around 111.37. US dollar index has broken previous week high of 93.63 and jumped till 93.99. The yellow metal has broken the support of $1285 (61.8% fibo) and is currently trading around $1283.34.
The yellow metals near term resistance at $1297 (55-W EMA) and any break above will take the yellow metal till $1302 (Weekly Kijun-Sen)/ $1309 (34-W EMA).
On the lower side, near term support is around $1284 (61.8% fibo) and any daily close below will drag the yellow metal down till $1269/$1263..
It is good to sell on rallies around $1288-90 with SL around $1297 for the TP of $1269.
