• FxWirePro: Gold daily outlook

    Source: FxWire Pro - Technicals / 19 Jan 2018 01:19:11   Eastern Standard Time

    • Gold is consolidating in narrow range after hitting high of $1344. The yellow metal shown a minor jump yesterday from the low of $1324 on account of slight weakness in US. Dollar. US dollar index has shown a minor weakness after a jump till 91. The yellow metal recovered till $1332.50 and is currently trading around $1331.42.
       
    • US 2- year yields hits 2008 high at 2.128% after better than expected U.S initial jobless claim. U.S jobless claims came at 22000 lowest level in 45 years. U.S 10 –year bond yield raised till 2.61% from the low of 2.49%. Any break above 2.62% confirms bullish continuation. The strength in US bond yields will support price of USD but this time it is decoupling with each other.
       
    • The near term support is at $1326 (233- H MA) and any violation below will drag the metal to next level till $1320 (61.8% fibo)/$1313/$1308 (Jan 10th low).  Minor weakness below $1300. Any break below $1300 will drag the gold till $1287.
       
    • On the higher side near term resistance is around $1352 (trend line joining $1433 and $1375) and break above targets $1357/$1375.

    It is good to sell on rallies around $1328-$1330 with SL around $1338 for the TP of $1314/$1309.