FxWirePro: Gold trades slightly lower on rising US bond yield, good to sell on rallies

• Gold declined almost more than $10 from yesterday high of $1346 on account of easing tensions in Middle East and Korea. The easing geo political tensions has reduced demand for safe haven assets like gold, yen and Swiss franc. But slightly strong dollar is dragging the yellow metal further down. It is currently trading around $1333.70.
   
• US 10- year bond yield hits 2.96% on Friday highest level since Jan 10th 2014 on account of positive US economic data and rising inflation. US dollar index has shown a nice recovery after hitting low of 89.23 level. It should break above 90.60 for further minor bullishness. It is currently trading around 90.37.
   
• The yellow metals near term resistance at $1340 and any break above will take the yellow metal till $1347/$1355. The major bullishness only above $1365. Any break above $1365 will take the gold till $1374/$1380.
   
• On the lower side, near term support is around $1330 (55- day EMA) and any break below will drag the yellow metal down till $1329 (61.8% fibo)/$1324.

It is good to sell on rallies around $1339-40 with SL around $1347 for the TP of $1331/$1324.