Gold breaks major trend line support, dip till $1260 likely

Major trend line support - $1300

Gold was trading weak and lost more than $20 from yesterday’s high of $1312 on account of strong US dollar.US dollar index is in uptrend for past one week and jumped more than 250 pips from low of 95.75. The declining US 10 year yield is supporting US dollar prices. The yellow metal hits low of $1288.45 and is currently trading around $1289.61.

On the lowerside,near term support is around $1288 (38.2% fib) and any break below will drag to next level till $1280/$1275/$1269 (300- day EMA). Any break below $1269 will drag the yellow metal to next level till $1248 (200- day MA).

The near term resistance is around $1301 (20- day MA) and any break above will take the yellow metal to next level till $1306/$1312.It should break above $1323 for further bullishness.

It is good to sell on rallies around $1297-98 with SL around $1305 for the TP of $1280/$1275.