FxWirePro: Gold Daily Outlook

• Gold has fallen 1% yesterday and hits 6- week low $1236 on account of strong dollar and flat US yield curve. The yellow metal shown a minor recovery till $1246 and is currently trading around $1245.
   
• Investors will watch for major data this week for further direction. Major data to be released this week are US June consumer confidence and revised US first quarter GDP. Any softness in the data could push back rate hike expectations.
   
• The yield curve between five –year note and 30-year note flattened to 95.2 basis point, narrowest since Dec 2007.
   
• Gold’s near term support is around $1239 (100-MA) and break below will drag the commodity down till $1229 (38.2% retracement of $1126 and $1296). The yellow metal has taken support near 100- day MA and any further weakness can be seen only below this level.
   
• On the higher side, in the 4 hour chart minor resistance is around $1255 (200- 4H MA) and any break above will take the commodity till $1266 (100- 4H MA)/$1263 (38.2% retracement of $1296 and $1243) /$1269 (daily Kijun-Sen).

It is good to sell on rallies around $1250-$1252 with SL around $1263 for the TP of $1229/$1218. 

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