Gold -0.29% has declined almost $18 from the high of $1352 formed yesterday. The yellow metal selling was mainly due to rise in US yields and slight recovery in US dollar 0.04% . US dollar index 0.04% has recovered more than 100 pips from the low of 88.44. It is currently trading around 89.46.
US 10 year yield rose above 2.70% for the first time since 2014.Markets awaits Fed policy meeting which is to be happen on Wed. Any hawkish statement by Fed would be supportive for US dollar 0.04% and bond yields.
The near term support is at $1330 (20- day MA) and any violation below will drag the metal to next level till $1320/$1316.50 .Major weakness below $1330.
On the higher side near term resistance is around $1340 (10- day MA) and break above targets $1347/$1355. Bullish continuation only above $1365.
It is good to sell on rallies around $1337-39 with SL around $1347 for the TP of $1324/$1316.
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