Gold has lost nearly $50 from high of $1440 in the previous week. The decline in yellow metal price is due to the easing of the Safe-haven demand after Trump and Xi Jinping agreed to restart trade talks in the G20 meeting. It hits low of $1387.32 and is currently trading around $1386.50.
US dollar index has shown a good recovery and is trading above 200- day MA around 96.45. This confirms minor trend reversal and a jump till 97/97.40 is possible.
US 10 year yield is trading in a narrow range between 1.97% and 2.069% for the past 1-week. The near term resistance is around 2.076% (20- day MA).
Technically, near term resistance is around $1398-$1400 and any break above that level targets $1410/$1425. Major bullish continuation only above $1440.
On the flip side, near term support is around $1380 and any break below confirms minor weakness and a dip till $1367/$1360 is possible.
It is good to sell on rallies around $1392-93 with SL around $1402 for the TP of $1360.
