• FxWirePro: Gold hits fresh 3-month low on strong US Dollar, good to sell on rallies

    Source: FxWire Pro - Technicals / 12 Nov 2019 02:03:56   America/New_York

    Gold continues to trade lower and hits a fresh 3-month low at $1448 on strong US dollar and rising bond yield. DXY has formed a minor bottom around 97, any break above 98.40 confirms further bullishness. Markets eye US-China trade talk progress for further direction. It is currently trading around $1450.

     

    According to the CME Fed watch tool, the probability of keeping rates unchanged has increased from 95.6% to 97% and the chance of 25 bps cut declined to 3% from 4.4%.

     

    US 10-year yield was soaring and jumped more than 15%. It hits a high of 1.97% and is currently trading at 1.94%. It is holding above major resistance 1.91% and an increase till 2.14% likely.

     

    Technically, major support is around $1450 and any break below confirms bearish continuation, a decline till $1430/$1400 likely.

     

    The major resistance is around 1480, any indicative break up targets $1500/$1525. Major trend reversal only beyond $1555.

     

    It is good to sell on rallies around $1458-60 with SL around $1470 for the TP of $1430/$1400.

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