FxWirePro: Gold Daily Outlook

Gold is trading slightly higher nearly $10 from low of $1470 level after US President got impeached by the House of Representatives. But investors awaiting a clear picture of the US-China trade deal for further direction. US initial jobless claims dropped to -18k to 234K vs forecast of 225k, Philly fed manufacturing index declined sharply to 0.3 in Dec vs estimate 8.5. It high of $1481.55 yesterday and is currently trading around $1478.77.

According to the CME Fed watch tool, the probability of rates on hold declined from 100% to 97.8% and the chance of 25 bps hike in rates increased to 2.2% from 0%. US 10-year yield continues to trade higher, any break above 1.97% confirms bullish continuation. The spread between US 10-year and 2-year widened to 28 bps from 12.9 bps.

On the flip side, near-term support stands at $1456, violation beneath will drag the yellow metal down till $1450/$1445. Bearish continuation only underneath $1445.

The near-term resistance is at $1485, any indicative break beyond targets $1500/$1525.

It is good to buy on dips around $1468-69 with SL around $1460 for the TP of $1497.