Gold: Buy on dips (Global stock market sell- off) | November 21, 2018

Gold 0.07% is consolidating after hitting high of $1228.95 despite heavy selling US stock market.

The major three factors that drive gold 0.07% prices

  US dollar -0.13% Index: Strong for intraday. DXY -0.13% has gained more than 80 pips from the low of 96.04. It is currently trading around 96.82.The near term resistance is around 97.08 and any break above targets 97.40/97.70. (slight negative for gold 0.07% ).

USD/JPY: Weak . The pair is trading slightly higher for 2nd consecutive days. USDJPY 0.09% has taken support near 89 day EMA . It is currently trading around 112.88. The near term resistance is around 113.08 and any break above targets 113.50/114. Slightly negative for gold 0.07% .

 US 10 year yield : US 10 year yield is trading marginally higher and jumped more than 1.5% after a 6.5% decline from the high of 3.25%.It faces strong support around 3.07 (89- day EMA ) .Any further weakness only if it breaks convincingly below 3.07%. It is currently trading around 3.073. Slightly positive for Gold 0.07% .

 US 2 year yield: It has taken support near 89-day EMA and shown a marginal higher. The spread between US 10 year and 2 year has decreased from 30bpbs to 26bpbs.

Gold 0.07% technical

Major support $1183

Major resistance - $1240

The yellow metal has shown a minor selling after hitting high of $1228. On the higher side, major resistance is around $1226 (61.8% fib) and any convincing break above $1226 will take the commodity till $1230/$1236 .It should break above $1243 (Oct 26th 2018 high) for bullish continuation.

The near term support is around $1217 (55 day EMA ) and any violation below will drag the commodity down till $1209/$1200.

 It is good to buy on dips around $1215 with SL around $1209 for the TP of $1230.