FxWirePro: Gold trades slightly lower as US 10 year and 2 year spread declines , trade war tension supporting yellow metal from further selling

Major resistance- $1217

The major three factors that drive gold prices

US dollar Index: weak. DXY has lost more than 50 pips after hitting high of 95 level.The major near term support is around 23.6% fib at 94.31. The index has almost formed a double top around 95.70-75 and any major bullishness only above that level. (Slightly negative for gold).

USD/JPY: Trend slightly Bullish. The pair is trading higher and hits high of 112.16 yesterday .Major near term resistance is around 112.15 and any break above targets 113/113.50. Short term trend is slightly bullish as long as support 109.77 holds . Any daily close below 109.78 confirms bearish continuation and a dip till 109/108 likely. Slightly positive for gold.

US 10 year yield : US 10 year yield gained sharply more than 2%.from Thursdays low of 2.94%. It is currently trading around 2.993%. Any break above 3.129% confirms further bullishness.

US 2 year yield: It hits 10 year high at 2.78%.The spread between US 10 year and 2 year has reduced to 20bpbs from 35 bpbs lowest level since 2007.

Gold technical

Major support $1183

Major resistance - $1217

The yellow metal is consolidating in narrow range  and it is currently trading around $1198 The trend is slightly bullish as long as support $1192 holds.

 On the higher side, any break above $1214 will take the commodity till $1217/$1224/$1230.

It is good to buy on dips around $1193-94 with SL around $1185 for the TP of $1217/$1224.