FxWirePro: Gold trades well below $1200, dip till $1183 likely

Major resistance- $1217

The major three factors that drive gold prices

US dollar Index: Neutral. DXY has shown a minor decline of almost 37 pips from the high of 95.74. The index previously has jumped till 95.71 and shown a good decline. It is currently trading around 95.39. The downside capped by 23.6% fib at 94.31. Short term trend is slightly bullish as long as support 94.31 holds. (Slightly negative for Gold).

USDJPY: Trend slightly Bearish. The pair has jumped declined more than 100 pips from the low of 110.68.Short term trend is slightly bullish as long as support 109.77 holds. Any daily close below 109.78 confirms bearish continuation and a dip till 109/108 likely. Slightly positive for gold.

US 10 year yield : It has jumped more than 2.5% from the low of 2.829% . It has jumped more than 7.25% from the high of 3.016%.

US 2 year yield: The spread between US 10 year and 2 year has reduced to 25 bpbs from 35 bpbs.

Gold technical

Major support  $1183

Major resistance - $1217

The yellow metal has lost nearly $25 from the high of $1214.50. It hits low of $1189.50 and it is currently trading around $1193.50. The trend is bearish as long as resistance $1217 holds.

On the higher side, any break above $1217 will take the commodity till $1224/$1230/$1238.

It is good to sell on rallies around $1198-$1199 with SL around $1207 for the TP of $1183.