FxWirePro: Gold trades steady despite strong USD , geopolitical tensions weigh
Source: FxWire Pro - Technicals / 23 Oct 2018 02:15:07 America/New_York
The major three factors that drive gold prices
US dollar Index: Bullish. DXY has closed above trend line resistance at 95.95 yesterday. The index hits high of 96.09 and is trading around 96.05. The near term intraday trend reversal level is around 96.16 and any break above targets 96.32/97. It should break above 97 for further bullishness. ( Slightly negative for gold).
USD/JPY: weak . The pair hits high of 112.88 and started to decline from that level.It has declined till 112.48 at the time of writing. Any further weakness cane be seen below 111.50. The near term resistance is around 113 and any break above targets 113.48/114. Slightly positive for gold.
US 10 year yield : US 10 year yield is trading muted after hitting high of 3.25%. It was trading in narrow range between 3.25% and 3.128% for past 10 working days.It is currently trading around 3.17%. Slightly Negative for Gold.
US 2 year yield: It is trading higher and hits fresh high at 2.925% .The spread between US 10 year and 2 year has increased from 22bpbs to 28bpbs.
Major support $1183
Major resistance - $1217
The yellow metal has lost more than $10 yesterday on account of strong USD .On the higher side, any break above $1234 (200- WMA) will take the commodity till $1240/$1265 .It should close above $1265 for bullish continuation.
The near term support is around $1217 (89- day EMA) and any violation below will drag the commodity down till $1211/$1204.
It is good to buy on dips around $1220 with SL around $1216 for the TP of $1234/$1240.© FxWire Pro 2019. 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.