FxWirePro: Gold Daily Outlook

Major support- $1480

Major resistance - $1540

Gold is trading in a narrow range between $1500 and $1512 yesterday. With no major economic data markets eye US-China trade talk progress for further movement in the yellow metal. US Q2 GDP growth came at 2% annualized compared to 3.1% in Q1. The initial jobless claims rose by 3k to 213k slightly better than the forecast of 212k. The short-term trend is still bullish as long as support $1480 holds.

US 10-year bond yield continues to trade lower and lost nearly 3.5% from a high of 1.74%. It is around 1.702% at the time of writing. The spread between US-10 -year and 2-year has widened from to 2 bps from 4.3 bps.

On the flip side, major support is around $1480 and any violation below will drag the gold till $1462 (23.6% fib)/$1440.

The near resistance is around $1512-13 and any minor bullishness can be seen above this level. Any break above targets $1540/$1555. Major bullish continuation only above $1555.

It is good to buy on dips around $1500 with SL around $1490 for the TP of $1540/$1555.