FxWirePro: Gold recovers slightly on increasing geopolitical tensions, good to sell on rallies

• Gold prices recovered sharply after hitting four week low on lightly from the 4- week low on Sep 21st 2017 on increasing geopolitical tensions in North Korea.  The yellow metal jumped till $1313.52 at the time of writing. It is currently trading around $1312.26 0.2% higher.
   
• Fed decision to launch QT on Oct in the previous week monetary policy is major action taken by Central bank and it will have major impact on Gold price.
   
• The geopolitical tensions between North Korea and US is Supporting prices at lower level. Both US and North Korea are in war of words.
                 
• US Dollar index has shown a major jump after forming a minor bottom at 91.53. The pair is facing strong resistance at 92.70 (34- day EMA) and any break above will take the index to next level till 93.35/94.15. The index has taken support near 223- W MA and any break below confirms minor weakness.
   
• U.S 10 year yield has shown huge decline in two weeks on account of increasing geo political tensions in North Korea and U.S.
   
• Technically gold is facing minor resistance around $1320 (20- day MA) and any break above will take the yellow metal till $1332 (61.8% retracement of $1357.47 and $1288)/$1343.
   
• Gold’s near term support is around $1288 (50- day MA) and break below will drag the commodity down till $1280.The yellow metal should break below $1250 for major trend reversal. 

It is good to sell on rallies around $1313-$1315 with SL around $1320 for the TP of $1288/$1280.