FxWirePro: Gold trades lower on strong US stock market, good to sell on rallies
Gold has declined sharply yesterday on account of strong US stock market. The yellow metal dipped almost $13 on hopes of Senate passing the tax bill. It hits low of $1270 and is currently trading around $1274.87. US Dow …
Gold has declined sharply yesterday on account of strong US stock market. The yellow metal dipped almost $13 on hopes of Senate passing the tax bill. It hits low of $1270 and is currently trading around $1274.87.
US Dow gained almost 330 points and closed at 24272 1.39% higher and S&P 500 closed at 2647 rose 0.82% on optimism on US Senate passing tax reform .
US Dollar index has declined sharply after showing a jump till 93.51. The near term support is around 92.50 and any break below will drag the index to next level till 92.20/91.62. It is currently trading around 93.22. The pair is facing intraday resistance around 93.47 (10- day MA) and any break above will take the index to next level till 93.80/94.25/94.60/95.
US yields jumped to 2- week high at 2.44%on declining jobless claims and rise in inflation.
Technically gold is facing near term resistance around $1283 (50- day MA) and any break above will take the pair to next level till $1291/$1300.
Gold’s near term support is around $1283 (50- day MA) and break below will drag the commodity down till $1279/$1274.The yellow metal should close below $1262 (61.8% fibo) for major trend reversal.
It is good to sell on rallies around $1280-82 with SL around $1291 for the TP of $1263.
