- Gold prices declined on Friday as demand for safe- haven fades. The yellow metal declined almost $10 form the high of $1327.50 made yesterday. It is currently trading around $1329.20.
- Market eyes US Fed monetary policy for further direction. According to Investing.com fed rate monitor tool, more than 50% of traders expect that Fed might hike rates this year.
- US Dollar index has shown a minor recovery from the low of 91.58. The pair should close above 20 –day MA at 92.45 for further bullishness. Any close above will take the index till 93.11/94.15. The major near term support is around 91 and any break below will drag the index down till 90.
- U.S 10 year yield hits one – month high at 2.22% on increasing expectations of Fed rate hike this year.
- Technically gold is facing minor resistance around $1327.75 (61.8% retracement of $1334 and $1314.59) and any break above will take the yellow metal till $1333 (10- day MA)/$1343/$1350/$1358.
- Gold’s near term support is around $1316 (21- day MA) and break below will drag the commodity down till $1300.The yellow metal should break below $1250 for minor trend reversal.
It is good to sell on rallies around $1318-$1320 with SL around $1328 for the TP of $1305/$1300.
