• Gold prices is consolidating in narrow range after a sharp decline in previous week. The yellow metal declined more than $25 on account of strong US dollar. US dollar was trading high against all majors after more hawkish Fed. The slight divergence in Fed and ECB is dragging Euro lower. US 2 –year bond yield was trading slightly lower almost more than 1.5% for the day after hitting highest level since 2008 and 10 year yield declined slightly till 2.85% after hitting 3%. The trade tension between US and China is dragging USDJPY slightly lower .USDJPY has declined almost 150 pips from high of 110.90. It is currently trading around 109.88. The yellow metal hits low of $1275 yesterday and is currently trading around $1280.
   
• The major three factors to be watched for gold price movement are
  
  1 US Dollar index – Strong  (negative for gold)
  
  2.USDJPY- Slightly weak   (slightly positive for gold)
  
  3.US 10 –year yield – 2.87 % (1.7% decline for the day (slightly positive 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 $1296 (20- day MA). 
   
• On the lower side, near term support is around $1280 and any break below will drag the yellow metal down till $1275/$1269/$1260.
  
  ​It is good to sell on rallies around $1283-85 with SL around $1291 for the TP of $1269/$1260.