Major resistance- $1480
Gold recovered sharply nearly $20 on ongoing trade war uncertainty between the US and China. President Trump has tweeted that he like "idea of waiting until after the election for the China deal."Earlier on Monday US told that it would reimpose tariffs on steel and aluminum imported from Argentina and Brazil. The yellow metal hits a high of $1481.40 and is currently trading around $1480.73.
The US 10-year yield continues to trade weak for 2nd consecutive days and lost more than 9%. The spread between 10 and 2-year treasury has slightly narrowed to 17.2 bps from 21 bps.
On the flip side, near-term support stands at $1456, violation below will drag the yellow metal down till $1445/$1430/$1413 possible.
The near-term resistance is at $1480, any indicative break above targets $1500/$1525.
It is good to buy on dips around $1471-72 with SL around $1460 for the TP of $1495.
