FxWirePro: Gold lost more than $10 on rising global stock market, good to buy on dips
Source: FxWire Pro - Technicals / 17 Oct 2018 00:29:49 America/New_York
The major three factors that drive gold prices
US dollar Index: Slightly bullish. DXY has recovered slightly after hitting low of 94.95.The index has formed a triple bottom around 94.95 and any break below targets 94.60/94.20. The near term intraday trend reversal level is around 95.40 and any break above targets 96/96.32/97. It should break above 97 for further bullishness. The minor support is around 95.50( Slightly negative for gold).
USD/JPY: weak . The pair has recovered more than 80 pips from low of 111.62. The near term resistance is around 112.60 and any break above targets 113.Minor trend reversal happens if breaks convincingly below 111.50 (89- day EMA). Slightly negative for gold.
US 10 year yield : US 10 year yield is trading slightly lower after hitting multiyear high @3.25%.It is currently trading around 3.17%. Negative for Gold.
US 2 year yield: It shown a minor recovery around 2% till 2.870% .The spread between US 10 year and 2 year has increased from 22bpbs to 30bpbs.
Major support $1183
Major resistance - $1217
The yellow metal has declined more than $10after huge jump. Global stock markets has shown a massive jump especially US markets jumped more than 2% on better then expected corporate earnings.
On the higher side, any break above $1234 will take the commodity till$1240/$1250.It should close above $1265 for bullish continuation.
The near term support is around $1211 (23.6% fib) and any violation below will drag the commodity down till $1204/$1198.
It is good to buy on dips around $1210 with SL around $1204 for the TP of $1230.© FxWire Pro 2018. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.