• Gold declined sharply in the previous week after hawkish AAP taper by ECB. The yellow metal declined till $1265 3- week low on strong US dollar and rising 10- year bond yields. It is currently trading around $1271.40.
   
• QE tapering by major central banks ECB and FED is the main reason for decline in the gold prices decline. ECB tapers Asset purchase program (AAP) to 30 billion euros from 60 billion euros. That means ECB QE will collapse from 720B euros to 270b euros.
   
• US Dollar index has shown a minor decline from the high 95.15. The index dipped till 94.78 and is currently trading around 94.78. The index is facing strong resistance at 95.25 (61.8% fibo) and any break above targets 96.51 level. It is currently trading around 94.81. The pair is facing major support near 93.95 (7- day MA) and any break below confirms minor weakness till 93.51 (55- day EMA)/92.60 likely.
   
• Technically gold is facing near term resistance around $1274 (23.6% retracement of $1305 and $1265) and any break above will take the pair to next level till $1284/$1291. Overall bullish continuation can be seen if it closes above $1300 (50- day MA).
   
• 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. 
  
   It is good to sell on rallies around $1275-77 with SL around $1284 for the TP of $1262/$1250.