FxWirePro: Gold Daily Outlook

Major resistance- $1217

The major three factors that drive gold prices

US dollar Index: Weak. DXY has once again declined after hitting high of 95.56 .The index hits low of 94.88 and any break below 94.85 (55- day EMA) targets 94.31/94. The index has almost formed a double top around 95.70-75 and any major bullishness only above that support 94.31 holds. (Slightly positive for gold).

USD/JPY: Trend slightly Bullish. The pair hits low of 110.38 and shown a good recovery of more than 100 pips. Short term trend is slightly bullish as long as support 109.77 holds . Any daily close below 109.78 confirms bearish continuation and a dip till 109/108 likely. Slightly positive for gold.

US 10 year yield : It has jumped more than 4% from the Thursday’s low of 2.865 on hopes of further rate hike. It is currently trading around 2.98%. Any break above 3.0160% confirms further bullishness.

US 2 year yield: It hits 10 year high at 2.76%.The spread between US 10 year and 2 year has reduced to 23 bpbs from 35 bpbs.

Gold technical

Major support $1183

Major resistance - $1217

The yellow metal is consolidating after a decline of more than $10 from the high of $1206.80 on strong US dollar. It hits low of $1191.44 and it is currently trading around $1193.81. The trend is slightly weak as long as resistance $1217 holds.

 On the higher side, any break above $1200 will take the commodity till $1208/$1217/$1224/$1230.

It is good to sell on rallies around $1200-01 with SL around $1190 for the TP of $1183