FxWirePro: Gold Daily Outlook

Major support - $1412

Gold is trading slightly bullish for the past two trading days. Markets eye US Fed monetary policy meeting today for further direction. US dollar index has lost nearly 20 pips from high of 98.21 after weaker than expected US core PCE inflation. The annual core PCE came at 1.6% in Jun compared to the forecast of 1.7%. But US CB consumer confidence improved to 135 in Jul from 121.5 in Jun.

The central bank is expected to cut rates by 25 bps for the first time in 11 years. According to the CME Fed Watch tool, there is a 78.1% probability of 25 bps rate cut and a 21.9% chance of 50 bps rate cut. Major economic data to be released today are US ADP employment.

US 10 year bond yields are trading flat after hitting a high of 2.10%. It is currently trading at  2.055%.Major bullishness only above 2.15%.

On the flip side, $1410-$1412 will be acting as major intraday support and any convincing break below will drag the yellow metal down till $1400/$1390. Any violation below $1380 confirms bearish continuation.

The yellow metal is facing strong resistance around $1440 and any break above targets $1452. Bullish continuation only above $1452. The minor resistance is around $1425/$1434.

It is good to buy on dips around $1420 with SL around $1412 for the TP of $1440/$1452.