FxWirePro: Gold Daily Outlook  

Gold recovered nearly $20 from a low of $1481 after Fed monetary policy meeting. The central bank has cut its rates by 25 bps with 8-2 vote in favor of rate cut. It has changed its forward guidance by removing "act as appropriate" and this shows that the Fed is expected to follow a wait and watch approach. US ADP private employment has added 125000 jobs in the month of Oct vs forecast of 125, real GDP increased at an annual rate of 1.9% slightly less than the second quarter 2%. According to the Fed watch tool, the chance of keeping rates unchanged has increased from 0% to 83%.

US10-year yield has declined more than 4% after the Fed policy meeting and is trading around 1.78%. The spread between 10 -year and 2-year has narrowed to 15 bps.

Technically, near term support is around $1480, any violation below will drag the yellow metal down till $1473/$1458. Major weakness only below $1458. 

The near-term resistance is around $1515-17, a convincing break above will take the yellow metal till $1525/$1540. Any bullish continuation only above $1555.

It is good to sell on rallies around $1504-05 with SL around $1515 for the TP of $1458.