• Gold -0.10% prices has jumped sharply almost $15 yesterday after a one week continuous selling. The yellow metal recovered almost 2% from the low of $1282 on account of renewed geo -0.78% political tensions between US and China. The gold -0.10% prices was supported by Trump’s statement that he was not pleased over recent talks with China. Trump also stated that summit with North Korean leader Kim -1.25% Jong Un will not take place as planned on June 12th. The global equity markets are under pressure and US and German 10 –year government bond yields edged lower. USD/JPY 0.16% has shown a jump of 77 pips from low of 108.95. It is currently trading around 109.56. US dollar index 0.22% has recovered slightly from the yesterday low of 93.61. The yellow metal hits high of $1306 and is currently trading around $1301.99.
• The yellow metals near term resistance at $1307 (200- day MA) and any convincing break above will take the yellow metal till $1316 (55- day EMA )/ $13.
• On the lower side, near term support is around $1280 and any daily close below will drag the yellow metal down till $1269/$1263.
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It is good to sell on rallies around $1302-03 with SL around $1308 for the TP of $1294/$1287..