FxWirerPro: Gold decline after hitting three week high, Trump policy in focus
Thursday, March 23, 2017 5:57 AM UTC
- Major resistance - $1260 (200- day MA).
- Gold declined slightly after hitting three week high on account slight recovery in US dollar from seven week low. The yellow jumped till $1251.15 yesterday and is currently trading around $1245.
- DXY has slightly recovered after making a low of 99.55 level. The index is facing strong support at 99.25 and break below will drag the pair down till 98.
- U.S 10 year yield hits month low at 2.38% on concerns over Trump policies. It has closed at 2.40%. U.S bond has shown a slight jump after Fed hints at gradual increase of interest rates.
- Technically, near term resistance is $1250 and any break above will take the yellow metal till $1260 (200- day MA).
- On the lower side, $1229 (daily Kijun-Sen) will be acting as major support and any break below will drag the gold down till $1222 (100- day MA)/$1219 (50- day MA).
It is good to buy on dips around $1235-37 with SL around $1229 for the TP of $1250/$1259.