FxWirePro: Gold trades well below 20 –day MA on strong dollar, good to sell on rallies
Gold has declined almost $25 yesterday on account of rising US dollar index. Global stock market stabilized after steep sell off yesterday. The slight recovery in US dollar followed by US stock market has dragged the gol…
Gold has declined almost $25 yesterday on account of rising US dollar index. Global stock market stabilized after steep sell off yesterday. The slight recovery in US dollar followed by US stock market has dragged the gold prices down till $1320. It is currently trading around $1329.
US 10 year yield shown good selling after hitting 4- year high at 2.86%. The reason for decline in yield was due to huge sell –off in equity market has dragged investors to safe haven bond price. It has closed around 2.77%.
The yellow metal has recovered after showing a minor dip near 55- day EMA. Any further weakness can be seen only if it breaks below $1316. Any break below will drag the yellow metal down till $1309/$1300 is possible.
On the higher side near term resistance is around $1332 (23.6% fibo) and break above targets $1340/$1347/$1355. Bullish continuation only above $1365. The minor resistance is around $1343/$1347.
It is good to sell on rallies around $1336-38 with SL around $1347 for the TP of $1320/$1317
