Gold trades higher for second consecutive day.and jumped more than $15 from low of $1221.50 made yesterday on account of easing bond yield and minor weakness in US dollar.It is currently trading around $1236.88.
The major three factors that drive gold prices
US dollar Index: Weak. DXY declined after a minor recovery till 97.31.The index is facing strong support around 96.60 and any violation below targets 96/95.68.US Dollar index’s previous high is around 97.69 and any further bullishness only above that level.It is currently trading around 96.77.(Positive for gold).
USD/JPY: Neutral. The pair has lost nearly 60 pips from high of 113.81. It is currently trading around 113.13. The near term support is around 113 and any break below targets 112/11.37. positive for gold.
US 10 year yield : US 10 year yield is trading weak and convincingly broken major support 3%. It hits low of 2.936% and is currently trading around 2.943%.Positive for Gold.
US 2 year yield: It is trading nearly flat and spread between US 10 year and 2 year has decreased sharply to 13bpbs from 30 bpbs.
Gold technical
Major support $1183
Major resistance - $1243
On the higher side, major resistance is around $1243 and any convincing break above $1243 will take the commodity till $1250/$1260.
The near term support is around $1230 and any violation below will drag the commodity down till $1219 (55-day EMA)/$1211.
It is good to buy on dips around $1232-33 with SL around $1227 for the TP of $1243/$1250.


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