Gold has shown a minor jump of nearly $8 yesterday on declining US 10 year yield. It is currently trading around $1239.01.
The major three factors that drive gold prices
US dollar Index: Neutral. DXY is trading flat after hitting high of 97.20.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 97.03.(Neutral for gold).
USD/JPY: Weak. The pair has lost nearly 100 pips from high of 113.66. It is currently trading around 112.70. The near term support is around 112.40 and any break below targets 112/11.37. positive for gold.
US 10 year yield : US 10 year yield is trading weak and lost more than 2%. it is holding well below 200 day MA. It hits low of 2.88% and is currently trading around 2.89%.Positive for Gold.
US 2 year yield: It is trading slightly lower and spread between US 10 year and 2 year has decreased sharply to 10bpbs from 30 bpbs. The spread between 5 year and 2- year yield has inverted for the first time since 2007.
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 $1233-34 with SL around $1227 for the TP of $1243/$1250.


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