FxWirePro: Gold halts 2-day gains as US dollar index and 10-year yield surges on hawkish Fed meeting minutes, good to buy on dips

The major three factors that drive gold prices

 US dollar Index: Slightly bullish. DXY has taken support near 89- day EMA and jumped nearly 80 pips after hawkish Fed meeting minutes. The near term intraday trend reversal level is around 95.75 and any break above targets 96/96.32/97. It should break above 97 for further bullishness. ( Slightly negative for gold).

 USD/JPY: weak . The pair has recovered more than 80 pips from low of 111.62. The near term resistance is around 112.78 and any break above targets 113/113.48.Minor trend reversal happens if breaks convincingly below 111.50 (89- day EMA). Slightly negative for gold.

US 10 year yield : US 10 year yield has jumped nearly 2% as Fed hints more rate hikes.It is currently trading around 3.21%. Negative for Gold.

US 2 year yield: It shown a minor recovery around 2% till 2.870% .The spread between US 10 year and 2 year has increased from 22bpbs to 32bpbs.

 Gold technical

Major support $1183

Major resistance - $1217

 The yellow metal is trading flat after hitting low of $1220. Global stock market has shown a minor sell off after Fed points more hikes. But US dollar and US 10 year yield is jumping after Fed.

On the higher side, any break above $1234 (200- WMA)  will take the commodity till $1240/$1265 .It should close above $1265 for bullish continuation.

The near term support is around $1217 (89- day EMA) and any violation below will drag the commodity down till $1211/$1204.

 It is good to buy on dips around $1217 with SL around $1210 for the TP of $1234/$1240.