Gold is trading lower for 5th consecutive days and lost more than $25 from previous week high of $1310 on easing geopolitical tension.
The major three factors that drive gold prices
US dollar Index: Slightly bullish. DXY has taken support near 55- day EMA.The index’s near term resistance is around 97.22 and any break above targets 97.52/97.71. The near term support is around 96.73 (55- day EMA) and any close below targets 96.36/95.75.(Slightly negative for gold).
USD/JPY: Strong . USD/JPY is hovering near 112 level and facing strong resistance around 112.13 and any break above confirms further bullishness. Negative for gold.
US 10 year yield : US 10 year yield is trading steady after a 10% jump from low of 2.34%.The near term resistance is around 2.603% and any break above targets 2.689%/2.735%.It is currently trading around 2.559%. Negative for Gold.
US 2 year yield: It is trading around 2.396%. The spread between US 10 year and 2 year has declined to 15bpbs from 30 basis point. The spread between 3 month and 10- year yield inversion has reversed (US 10 year yield trading above US 3 month).
Gold technical
On the higher side, near term resistance is around $1297 (55- day EMA) and any convincing break above targets $1300/$1308/$1312. The yellow metal should break above $1324 for further bullishness.
The near term support is around $1280 and any convincing below will drag the commodity down till $1269/$1260.
It is good to sell on rallies around $1287-89 with SL around $1300 for the TP of $1261.


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