FxWirePro: Gold Daily Outlook

Overall trend - bearish

Gold is consolidating in narrow range between $1204.52 and $1219.78 for past one week three. US dollar index hits fresh 3 week high after breaking major resistance 95.65 and jumped nearly 100 pips.The yellow metal hits high of $1217 previous week and is currently trading around $1214.50. 

The major three factors to be watched for gold price movement are

1. US Dollar index – bullish (negative for gold)- DXY has shown a jump of more than 150 pips in previous week and shown a minor dip. It is currently trading around 96.44.
    
2. USD/JPY-  weak (positive for gold)- It is showing a correction of almost 200 pips after hitting high of 112.15. It is currently trading around 110.18.
    
3. US 10 –year yield – 2.86% (declined more than 5% from high 3.016%). It is slightly positive for gold.
4. US 2 year yield 2.60% (0.24%). The spread between 2 year and 10 year yield (2.86%-2.60%) is 26 bass point slightly reduced from 35 basis point.

The pair is facing strong support at $1207 and any break below will take the yellow metal till  $1200 (61.8% fib)/$1190/$1160.

The near term resistance is around $1213 (10-day MA) and any convincing break above will take the yellow metal till $1221 (20- day MA)/$1235 (daily Kijun-Sen).

It is good to sell on rallies around $1215-16 with SL around $1221 for the TP of $1201.