Gold: Sell on rallies : FxWirePro | October 19, 2017

Gold -0.16% declined sharply till $1276.50 from the intraday high of $1288 on account of slight strength in US dollar 0.00% and on rumor that Trump favors Hawkish Taylor for Fed chairman. The yellow metal prices are expected to trade weak as geo -2.02% political tensions eases in North Korea. It is currently trading around $1284.93.

• US President Donald Trump is leaning towards nominating Economist John Taylor as next Fed chairman who is more hawkish than current Chairman Janet Yellen.

• US Dollar index 0.00% has shown a minor dip till 93.27 after hitting high of 93.80 yesterday. It is currently trading around 93.41. The pair is facing major support near 92.60 and any break below confirms minor weakness till 91.95/91.62. The near term resistance is at 93.70 ( 61.8% retracement of 92.75 and 94.27) and any convincing break above will take the index to next level till 94.30/95.

• U.S 10 year yield has shown a minor jump after hitting low of 2.30% and it is facing resistance at at 2.40% and break above will target 2.58%.

• Technically gold -0.16% is facing major resistance around $1300 (50- day MA) and any break above will take the yellow metal till $1309 ( 50% retracement of $1357 and $1260) /$1313/$1320.

• Gold’s near term support is around $1269 ( trend line support) and break below will drag the commodity down till $1262 ( 61.8% retracement of $1204 and $1357.90).The yellow metal should close below $1250 for major trend reversal.

It is good to sell on rallies around $1287-$1290 with SL around $1300 for the TP of $1262.