The yellow metal trades weak and is expected to reach Feb month low on Fed hopes. Gold trading almost near previous week low on account increasing hopes of Fed rate hike in Mar. It is currently trading around $1226.
US 2 year yield hits 1.341% high since Aug 2009. The probability of rate hike in Mar increased from 33% to 98%.
US Dollar index recovered slightly after declining till 101.22. It is currently trading around 101.62.Minor weakness can be seen only below 100.60.
On the higher side, $1262 (200- day MA) will be acting as major resistance and any further bullishness only if it closes above that level. Any daily close above $1262 will target $1278 ( of $1375.20 and $1122.70). The minor resistance is at $1250.
The immediate support is around $1223 (21- W ) and any close below targets $1213 (100- day MA)/$1206.
It is good to sell on rallies around $1226-$1228 with SL around $1236 for the TP of $1216/$1212.