- Gold prices has declined more than $15 yesterday on account of easing geopolitical tensions and rising US dollar. US dollar recovered sharply against Euro after the pair fails to breaks above 1.2000 level. Trump’s tweet on China’s telecom company ZTE shows that US-China trade war is easing and that also dragged the prices of yellow metal. USD/JPY has recovered sharply after hitting low of 109.20 yesterday. USD/JPY and gold has negative correlation each other. US dollar index is trading slightly weak on account of profit booking. The index hits low of 92.24 and recovered sharply till 92.81 from that level. It is currently trading around $1311.60.
- The yellow metals near term resistance at $1325 (100- day MA) and any break above will take the yellow metal till $1328 (50- day MA)/$1333/$1340.
- On the lower side, near term support is around $1305 (200- day MA) and any daily close below will drag the yellow metal down till $1294/$1285.
It is good to sell on rallies around $1315-17 with SL around $1325 for the TP of $1300/$1285.
