FxWirePro: Gold trades in narrow range, bullish only above $1308

• Gold prices trades in narrow range between $1289 and $1306.50 for the past eight trading session. US 10 –year bond yields jump and easing Italy political stability is putting pressure on gold price. The easing geo political tension is dragging the price of yen. The Yen and gold are directly proportional to each other. But slight weak in US dollar index is preventing gold from declining further. The yellow metal hits low of $1290 and is currently trading around $1292.59.
   
• The major three factors to be watched for gold price movement are

1. US Dollar index – weak (positive for gold)
    
2. USDJPY- strong (negative for gold)
    
3. US 10 –year yield – 2.94% (7% jump) ( negative for gold)
    

• The yellow metals near term resistance at $1307 (200- day MA) and any convincing break above will take the yellow metal till $1316 (55- day EMA)/ $1324 (50% fibo). 
   
• On the lower side, near term support is around $1289 and any break below will drag the yellow metal down till $1280/$.

It is good to sell on rallies $1297-$1300 with SL around $1307 for the TP of $1280/$1269.