Major resistance- $1217 (89- day EMA)
The major three factors that drive gold prices
US dollar Index: Slightly bullish. DXY has recovered slightly after hitting low of 94.95.The near term trend reversal level is around 96.32 and any break above targets 97. It should break above 97 for further bullishness. The minor support is around 95.50( positive for gold).
USD/JPY: weak . The pair has declined more than 200 pips from high of 114.54. The near term support is around 111.78 (10- W MA) and any close below targets 111.30/110.38.Minor trend reversal happens if breaks convincingly below 112. Any daily close below 112 confirms minor bearishness and a dip till 111/110.38 likely. Slightly positive for gold.
US 10 year yield : US 10 year yield is trading slightly lower after hitting multiyear high @3.25%.It is currently trading around 3.17%. Negative for Gold.
US 2 year yield: It shown a minor recovery around 2% till 2.879% .The spread between US 10 year and 2 year has increased from 22bpbs to 30bpbs.
Gold technical
Major support $1183
Major resistance - $1217
The yellow metal has declined slightly after a $25 jump. The escalating geopolitical tensions between US and Riyadh after disappearance of Washington post columnist Jamal Khashoggi.
On the higher side, any break above $1230 will take the commodity till $1234/$1240.It should close above $1265 for bullish continuation.
The near term support is around $1211 (23.6% fib) and any violation below will drag the commodity down till $1204/$1198.
It is good to buy on dips around $1210 with SL around $1204 for the TP of $1230.


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