Gold is trading slightly higher after a $25 selling from high on rising US 10 year bond yield.
The major three factors that drive gold prices
US dollar Index: Bearish for intraday. DXY has lost more than 50 pips after a minor jump above 97level.The index jumped till 97.20 and is currently trading around 96.83.The near term support is around 96.60 and any break below targets 96.36/95.95. ( Slightly positive for gold).
USD/JPY: weak . The pair has lost more than 50 pips after jump of more than 1.5% and is currently trading around 112.83. The near term resistance is around 113.47 (61.8% fib) and any break above targets 114/114.55. Slightly negative for gold.
US 10 year yield : US 10 year yield is trading higher and jumped more than 3.5% from low of 3.05%.It is currently trading around 3.16%. Slightly negative for Gold.
US 2 year yield: It is trading slightly higher after hitting low of 2.782%.The spread between US 10 year and 2 year has reduced from 33bpbs to 30bpbs.
Gold technical
Major support $1183
Major resistance - $1240
The yellow metal has declined almost $25 after hitting high of $1243 on account of strong USD .On the higher side, major resistance is around $1220 and any break above $1220 will take the commodity till $1229/1236 .It should close above $1243 for bullish continuation.
The near term support is around $1215 (55- day EMA) and any violation below will drag the commodity down till $1211/$1204.
It is good to sell on rallies around $1220-22 with SL around $1228 for the TP of $1200.


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