Gold trades weak on strong US 10 year yield, good to sell on rallies
- Gold has decline almost $22 on Friday after better than expected US non-farm payroll. The yellow metal declined till $1327 and is currently trading around $1334.
- US economy has added 20000 jobs for the month of Jan compared to forecast of 18000. Wage growth has improved a lot and gained 2.9% on the annualized basis, the best gain since 2009. US dollar index gained almost 80 pips from the low of 88.59. US 10 year yield hits 4- year high of 2.85% after strong jobs report.
- The yellow metal has closed below 20 –day MA and this confirms further weakness, a decline till $1320/$1309 (55- day EMA) is possible.
- On the higher side near term resistance is around $1352 and break above targets $1357/$1366. Bullish continuation only above $1365. The minor resistance is around $1343/$1347.
It is good to sell on rallies around $1335-37 with SL around $1343 for the TP of $1320/$1309.55.
Source: FXWire Technicals