- Gold declined almost more than $15 from yesterday high of $1335.99 on account of strong US Dollar and 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 $1326.67.
- US 10- year bond yield hits 2.99% yesterday highest level since Jan 10th 2014 on account of positive US economic data and rising inflation. US dollar index has shown a nice recovery almost 70 pips. It has broken trend line resistance and closed slightly above that level. It is currently trading around 90.37.
- The yellow metals near term resistance at $1330 and any break above will take the yellow metal till $1333 (55- H EMA)/$1342 (200- H MA). 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 $1332 with SL around $1338 for the TP of $1322/$1319.
