FxWirePro: Gold trades steady on rising geopolitical tensions, good to buy on dips

The major three factors that drive gold prices

 US dollar Index: Slightly weak. DXY has once again declined after jumping above 96.09 for third time (previous high 96.12,96.16). The index made high of 96.09 and declined nearly 50 pips from that level. The near term intraday trend reversal level is around 96.16 and any break above targets 96.32/97. It should break above 97 for further bullishness. ( Slightly negative for gold).

 USD/JPY: weak . The pair was trading higher and jumped more than 50 pips from the low of 112.17. Any further weakness cane be seen below 111.50. The near term resistance is around 112.78 and any break above targets 113/113.48. Slightly negative for gold.

US 10 year yield : US 10 year yield is trading muted after hitting high of 3.25%. It was trading in narrow range between 3.25% and  3128% for past 10 working days.It is currently trading around 3.19%.  Slightly Negative for Gold.

US 2 year yield: It is trading higher and hits fresh high at 2.919% .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 is trading flat after hitting low of $1220. The rising geopolitical tensions between US and Saudi, Italy political uncertainty and Brexit is supporting prices of yellow metal.

On the higher side, any break above $1234 (200- WMA) will take the commodity till $1240/$1265 .It should close above $1265 for bullish continuation.

The near term support is around $1217 (89- day EMA) and any violation below will drag the commodity down till $1211/$1204.

 It is good to buy on dips around $1217 with SL around $1210 for the TP of $1234/$1240.