- Gold prices trades in narrow range between $1289 and $1306.50 for the past nine trading session. Euro and global yields are trading higher yesterday on hopes that ECB would wind up stimulus program by end of the year. US 10 –year bond yield trades higher and jumped more than 2%. The easing geo political tension is dragging the price of yen. The Yen and gold are directly proportional to each other. But slight weak in US dollar index is preventing gold from declining further. The yellow metal hits high of $1301.60 and is currently trading around $1.
- The major three factors to be watched for gold price movement are
- US Dollar index – weak (positive for gold)
- USDJPY- strong (negative for gold)
- US 10 –year yield – 2.97% (8.75% jump from the low of 2.73%) ( negative for gold)
- The yellow metals near term resistance at $1307 (200- day MA) and any convincing break above will take the yellow metal till $1316 (55- day EMA)/ $1324 (50% fibo).
- On the lower side, near term support is around $1289 and any break below will drag the yellow metal down till $1280/$.
It is good to sell on rallies $1297-$1300 with SL around $1307 for the TP of $1280/$1269.
