- Gold continuing its weakness and declined $20 yesterday. The yellow metal hits intraday low of $1325.10 and trading at $ 1327. US dollar has shown good recovery almost 60 pips from the low of 89.22 and is trading at 89.85.
- The yellow metal selling was only of short covering in USDJPY. USDJPY broken resistance is at 107.65 (10- day MA) and jumped till 107.90. The yen and gold are moving in tandem with each other on safe haven demand.
- On the lower side, any break below $1318 (55- day EMA) will drag the gold down till 1316 (38.2% fibo)/$1309. Bearish continuation only if it breaks below $1305 level.
- The near term resistance is around $1341 and any close above will take the commodity till $1348/$1355. Overall bullish continuation only above $1366.
It is good to sell on rallies around $1332-35 with SL around $1341 for the TP of $1321/$1316.