FxWirePro: Gold Weekly Outlook

FxWirePro: Gold Weekly Outlook

Major Support- $1445

Gold is trading weak for 2nd consecutive days on strong US dollar and hopes of US-China trade deal. The US dollar index has formed a minor bottom near 97.60 and shown a good recovery till 98.31. the yellow metal hits high of $1478 previous week and is currently trading around $1458.

The US 10- year bond yield trades slightly higher after a decline of more than 12% from high 1.97%. the spread between US 2and 10-year has narrowed to 14.7 bps from 27 bps.

According to the Fed Watch tool, the probability of the Fed to keep rates unchanged has declined to 90.4% from 100% 1-week ago, the chance of rate hike increased to 9.6% from 0%.

On the flip side, near-term support stands at $1456, violation below will drag the yellow metal down till $1445/$1430/$1413 possible. 

The near-term resistance is at $1480, any indicative break above targets $1500/$1525.

It is good to sell on rallies around $1465-67 with SL around $1478 for the TP of $.