FxWirePro: Gold trades lower strong U.S dollar, good to sell on rallies
Gold declined sharply till $1276.50 and hits 2- week low as USD gained strength against Yen after Abe’s ruling bloc scored a big win in election. The yellow metal prices hits low of $1274 at the time of writing. It is cu…
Gold declined sharply till $1276.50 and hits 2- week low as USD gained strength against Yen after Abe’s ruling bloc scored a big win in election. The yellow metal prices hits low of $1274 at the time of writing. It is currently trading around $1275.
Abe’ Liberal democratic party coalition won a combined 312 seats tow third majority in the 465 member in lower house.
US Dollar index has shown a major recovery till 93.91 after hitting minor low at 93.35 yesterday. It is currently trading around 93.76. The pair is facing major support near 92.60 and any break below confirms minor weakness till 91.95/91.62. The near term resistance is at 94.29 and any convincing break above will take the index to next level till 95/96.
U.S 10 year yield has shown a minor jump after hitting low of 2.30% after US senate passed budget and it is facing resistance at 2.40% and break above will target 2.58%.
Technically gold is facing major resistance around $1300 (50- day MA) and any break above will take the yellow metal till $1309 (50% retracement of $1357 and $1260) /$1313/$1320.
Gold’s near term support is around $1269 (trend line support) and break below will drag the commodity down till $1262 (61.8% retracement of $1204 and $1357.90).The yellow metal should close below $1250 for major trend reversal.
It is good to sell on rallies around $1282-$1284 with SL around $1300 for the TP of $1262.
