Gold: Sell on rallies : FxWirePro | May 16, 2018

• Gold 0.06% prices has declined more than $25 yesterday on account of rising US 10 year bond yield and US dollar 0.26% . US 10 year bond yield jumped more than 3% yesterday and hits fresh 4 year high at 3.09%. US 10 year yield and Gold 0.06% has perfect negative correlation with each other. It is currently trading around 3.06%. USD/JPY -0.20% also broken major resistance 110 and jumped till 110.45 and is trading slightly above 200-day MA. US dollar index 0.26% recovered sharply more than 100 pips yesterday till 93.45. the yellow metal shown minor jump after hitting low of $1288 and is currently trading around $1294.

• The yellow metals near term resistance at $1306 (200- day MA) and any break above will take the yellow metal till $1318-19 (38.2% fib/20- day MA)/$1325 (100- day MA)/$1330.

• On the lower side, near term support is around $1284 (61.8% fibo) and any daily close below will drag the yellow metal down till $1269/$1263..

It is good to sell on rallies around $1298-300 with SL around $1307 for the TP of $1285/$1269