FxWirePro: Gold takes support near 300-day EMA, good to sell on rallies

Major Support- $1280

Gold has broken major support $1280 after a long consolidation for 10 trading day and hits low of $1272. It has shown a minor recovery due to slight weakness in USD.Overall sell-off was mainly due to strong global stock market on account of easing US-China trade war. US bond yield jumped more than 6% in past 5 days and this is slightly negative for yellow metal.It is currently trading around $1278.27.

The near term resistance is around $1286 (38.2% fib) and any break above will take the yellow metal till $1292 (5- day MA)/$1296/$1300.

On the lower side, any convincing break below $1271.50 (300- day EMA) confirms bearish continuation a decline till $1272/$1261 likely.

It is good to sell on rallies around $1281-82 with SL around $1287 for the TP of $1261.