FxWirePro: Gold jumps more than $15 on escalating geopolitical tensions, good to buy on dips

The major three factors that drive gold prices

 US dollar Index: Slightly bullish. DXY has recovered slightly after hitting low of 94.95.The index has formed a triple bottom around 94.95 and any break below targets 94.60/94.20. The near term intraday trend reversal level is around 95.40 and any break above targets 96/96.32/97. It should break above 97 for further bullishness. The minor support is around 95.50( positive for gold).

 USD/JPY: weak . The pair has declined more than 200 pips from high of 114.54. The near term support is around 111.78 (10- W MA) and any close below targets 111.30/110.38.Minor trend reversal happens if breaks convincingly below 112. Any daily close below 112 confirms minor bearishness and a dip till 111/110.38 likely. Slightly positive for gold.

US 10 year yield : US 10 year yield is trading slightly lower after hitting multiyear high @3.25%.It is currently trading around 3.17%. Negative for Gold.

US 2 year yield: It shown a minor recovery around 2% till 2.879% .The spread between US 10 year and 2 year has increased from 22bpbs to 30bpbs.

 Gold technical

Major support $1183

Major resistance - $1217

 The yellow metal has declined slightly after a $25 jump. The escalating geopolitical tensions between US and Riyadh after disappearance of Washington post columnist Jamal Khashoggi.  

 On the higher side, any break above $1230 will take the commodity till $1234/$1240.It should close above $1265 for bullish continuation.

The near term support is around $1211 (23.6% fib) and any violation below will drag the commodity down till $1204/$1198.

 It is good to buy on dips around $1210 with SL around $1204 for the TP of $1230.