Gold downside capped by 10-day MA, good to sell on rallies
Gold prices declined almost $17 yesterday from the high of $1290 made on Apr 19th 2017. The yellow metal is under pressure as demand for safe haven assets eased .
U.S dollar index has recovered slightly after making a low of 99.48 and jumped till 99.89 yesterday. The index should break above 100 for further bullishness. Major weakness can be seen only below 98.86 level.
On the higher side, any break above $1300 will take the yellow metal till $1306 (161.8% retracement of $1263.87 and $1195.12)/$1332.
The major near term support is around $1271 (10- day MA) and any break below will drag the yellow metal down till $1256 (200- day MA)/ $1244 (50% retracement of $1195 and $1295).
It is good to sell on rallies around $1282-$1283 with SL around $1291 for the TP of $1272/$1261.
U.S dollar index has recovered slightly after making a low of 99.48 and jumped till 99.89 yesterday. The index should break above 100 for further bullishness. Major weakness can be seen only below 98.86 level.
On the higher side, any break above $1300 will take the yellow metal till $1306 (161.8% retracement of $1263.87 and $1195.12)/$1332.
The major near term support is around $1271 (10- day MA) and any break below will drag the yellow metal down till $1256 (200- day MA)/ $1244 (50% retracement of $1195 and $1295).
It is good to sell on rallies around $1282-$1283 with SL around $1291 for the TP of $1272/$1261.
