FxWirePro: Gold trades weak on strong US dollar, good to sell on rallies

• Gold has shown a minor $10 jump on Friday’s low of $1315.19 on account of slight profit booking in US dollar. The minor decline in US dollar index yesterday after hitting high of 91.99 and closed at 91.53. US 10 year yield has shown a minor correction of almost 3% from high of after hitting high of 3.04%. It is currently trading around $1318.09.
   
• US advance GDP came slightly above estimate. It came at 2.3% compared to forecast of 2%. Market awaits US FOMC statement which is to be released on Wed and US PCE data today for further direction.
   
• The yellow metals near term resistance at $1327 and any break above will take the yellow metal till $1332 (50- day MA)/    $1338/$1344/$1348. 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 $1318 (100- day MA) and any close below will drag the yellow metal down till $1308/$1303 (200- day EMA).

It is good to sell on rallies around $1319-20 with SL around $1326 for the TP of $1307/$1302.