- Gold prices has shown a minor $13 jump from the low of $1261.14. The yellow metal has declined slightly after a minor jump and is currently trading around $1265.50.US dollar index pared most of its gains in the past two trading session. DXY hits high of 95.50 and declined more than 100 pips on account of profit booking. The major reason for huge decline in gold in the previous week is due to strong US dollar index. The yellow metal declined more than $50 in past two weeks. The slight divergence in Fed and ECB is dragging Euro lower. US 2 –year bond yield is showing a minor weakness and has decliened 0.52% for the day . It is currently trading around 2.53% and 10 year yield is trading weak after a minor jump till 3%. The trade tension between US and other major economies has been escalated and USD/JPY is trading weak and declined more than 150 pips. It is currently trading around 109.45. The yellow metal is currently trading around $1266.
The major three factors to be watched for gold price movement are
1.US Dollar index – Strong (negative for gold)
2.USD/JPY- positive (slightly negative for gold)
3.US 10 –year yield – 2.95% (-0.31% for the day (neutral for gold)
- The yellow metals near term resistance at $1307 (200- day MA) and any convincing close above will take the yellow metal till $1316 (55- day EMA)/ $1324 (50% fibo).The minor resistance is around $1285/$1293 (20- day MA).
- On the lower side, near term support is around $1260 and any break below will drag the yellow metal down till $1250/$1236.
It is good to sell on rallies around $1265-67 with SL around $1276 for the TP of $1250/$1236.
