Gold takes support near trend line, good to sell on rallies : FxWirePro | October 24, 2017

• Gold -0.37% pared its losses after hitting 2- week low at $1272 on yesterday due to slight weakness in U.S dollar and minor profit booking in US indexes. The yellow metal prices broken 100 –day MA at $1276 and jumped till $1283.50 level and is currently trading around $1275.

• Gold -0.37% prices was trading slightly weak after Abe’s victory in the elections. USD/JPY 0.22% hits almost three months high on hopes that Japan’s loose monetary policy would stay in place.

• US Dollar index 0.01% has shown a minor selling after hitting high of 94.02 level. The index is facing strong resistance at 94.27 and any further bullishness can be seen only above that level. It is currently trading around 93.81. 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 94.29 and any convincing break above will take the index to next level till 95/96.

• U.S 10 year yield has shown a minor jump till 2.39% after hitting low of 2.30%.It is facing resistance at 2.40% and break above will target 2.58%.

• Technically gold -0.37% is facing major resistance around $1284 (55- 4H EMA ) and any break above will take the yellow metal till $1291/$1300.

• 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 $1283-$1285 with SL around $1291 for the TP of $1262.