FxWirePro: Gold recovers slightly from 7- week low, good to sell on rallies

• Gold has slightly recovered after hitting 7- week low on account of rising US 10- year bond yields and strong global equities. The yellow metal has jumped till $1276 and is currently trading around $1275 0.24% higher.
   
• Euro slightly recovered yesterday and market awaits ECB President and Janet Yellen speech at different events for further direction.
   
• US Dollar index has shown a minor decline after hitting high of 93.92 yesterday. It is currently trading around 93.43. The pair has once taken support near 23.6% (93) and any break below confirms minor weakness. The near term resistance is at 94.15 and any break above will take the index to next level till 95.
   
• U.S 10 year yield has slightly declined to 2.33% after hitting high of 2.36% and is expected to show a minor jump on increasing expectations of rate hike.
   
• Technically gold is facing minor resistance around $1278 and any break above will take the yellow metal till $1290 (55- day EMA)/$1302 (38.2% fibo).
   
• Gold’s near term support is around $1262 (61.8% retracement of $1204 and $1357.90) and break below will drag the commodity down till $1250 (200- day MA).The yellow metal should close below $1250 for major trend reversal. 

It is good to sell on rallies around $1275-77 with SL around $1288 for the TP of $1262/$1253.