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FxWirePro: Gold trades lower as US bond yield hits 7- year high, good to sell on rallies
- Gold prices breaks an intermediate term support and trend line on Tuesday and declined almost $13 from that level on account of rising US 10 year bond yield and US dollar. US 10 year bond yield jumped till 3.10% yesterday, highest level since 2011. US 10 year yield and Gold has perfect negative correlation with each other. It is currently trading around 3.10%.USD/JPY also broken major resistance 110 and jumped till 110.45 and is trading slightly above 200-day MA. US dollar index has shown a minor profit booking after hitting high of 93.63. The yellow metal shown minor jump after hitting low of $1286 and is currently trading around $1292.
- The yellow metals near term resistance at $1306 (200- day MA) and any break above will take the yellow metal till $1318-19 (38.2% fib/20- day MA)/$1325 (100- day MA)/$1330.
- On the lower side, near term support is around $1284 (61.8% fibo) and any daily close below will drag the yellow metal down till $1269/$1263..
It is good to sell on rallies around $1298-300 with SL around $1307 for the TP of $1285/$1269.