FxWirePro: Gold upside capped by 23.6% fibo, good to sell on rallies
Gold shown a minor jump from the 2-1/2 week low of $1259.97. But the yellow metal gave up the gains that came after US President Donald trump tax. The yellow metal declined almost $10 from the high made yesterday and is …
Gold shown a minor jump from the 2-1/2 week low of $1259.97. But the yellow metal gave up the gains that came after US President Donald trump tax. The yellow metal declined almost $10 from the high made yesterday and is currently trading around $1265 0.06%.
ECB has kept its interest rates unchanged at historic lows and mass bond buying unchanged. The central bank kept its main refinancing rates unchanged at 0%, marginal lending facility at 0.25% and deposit rates at -0.4%.
U.S 10 year bond yield shown a minor decline after jumping till 2.33% and is currently trading around 2.30%.
Gold has once again taken support near 200- day MA and shown a minor jump from that level. Any break below 200 –day MA ($1256) will drag the yellow metal down till $1245 (50% retracement of $1195 and 1295)/$1239 (100- day EMA).
On the higher side, near term resistance is around $1273 (23.6% retracement of $1295 and $1259) and any break above targets $1284/ $1295 (Apr 17th high)/$1300/$1318 (161.8% retracement of $1295 and $1265).
It is good to sell on rallies around $1267-$1270 with SL around $1280 for the TP of $1256/$1245.
