FxWirePro: Gold Daily Outlook

Gold has shown a massive recovery of more than $50 from low of $1381.50. The jump was mainly due to declining US 10 year bond yield. It has broken major support 1.97% low made on Jun 20th and hits low of 1.95% lowest level since 2016. The yellow metal reached till $1337 (almost a double top) yesterday and started to decline. It is currently trading around $1425.

On the flip side, near term support is around $1412.70 and any break below will drag the yellow metal to the next level till $1407-08 (5 and 34 H EMA)/$1402/$1397. Major weakness only below $1380.

The near term major resistance is around $1440 and any major bullish continuation only above that level. Any break above targets $1465.

On the data front, US ADP Non-Farm employment and US ISM services PMI which is to be released today have an impact on the US dollar index.

It is good to buy on dips around $1413-14 with SL around $1407 for the TP of $1430/$1437.