FxWirePro: Gold Weekly Outlook

FxWirePro: Gold Weekly Outlook

Gold is consolidating between a narrow range between $1497 to $1484.78 for the past 3 trading days. The yellow metal is struggling to trade above $1500 on account of a slight easing of US-China trade talks and Brexit deal optimism. But uncertainty still prevails in a trade deal and Brexit is supporting prices at lower levels. The weak US economic data is increasing the chance of a further rate cut by the Fed. It hits an intraday high of $1493.43 and is currently trading around $1490.85.

According to the CME Fed Watch, the probability of rate cut increased to 89.3% from 72.7% a week ago. Markets eye ECB monetary policy on Thursday for further direction. 

On the flip side, near term support is around $1472 and any violation below targets $1458. Major trend reversal only below $1458.

The near-term resistance is around $1500 and any convincing break above will take the yellow metal till $1512-15/1525. Any bullish continuation only above $1555.

It is good to sell on rallies around $1495-96 with SL around $1501 for the TP of $1460.