US dollar Index: strong. DXY is trading higher for 7th consecutive days and and jumped more than 130 pips on account of dovish ECB and Brexit uncertainty.
The index is trading above 96.30 (55-day EMA) and a jump till 96.95/97.75.On the higher side any break above 97.75 confirms bullish continuation.(slightly negative for gold).
USD/JPY: weak. USD/JPY has recovered more than 500 pips from low of 104.50. The pair should break above 110 for further bullishness. It is currently trading around 109.55.Slightly negative for gold
US 2 year yield: It is trading around 2.62%. The spread between US 10 year and 2 year has declined to 16bpbs from 30 basis point. The spread between 5 year and 2- year yield has inverted (US 5 year yield trading below US2 year yield).
US 10 year yield : US 10 year yield is slightly higher and has jumped more than 10% form low of 2.54%.The yield has declined sharply in past two months and lost nearly 22% from high of 3.25%.It is currently trading around 2.78%.Slightly negative for Gold.
Gold technical Forecast
Spot Gold Major support $1182
On the higher side, yellow metal is facing strong psychological resistance around $1300 and break above will take the gold to next level till $1320.
The near term support is around $1281 (20- day MA) and any violation below will drag the commodity down till $1272/$1268/$1254/$1246 /$1236.
Gold – It is good to sell on rallies around $1288-90 with Stop Loss around $1300 for the TP of $1262/$1248.