FxWirePro: Gold recovers slightly above $1500 on weak economic data, good to buy on dips

Gold recovered slightly above $1500 after weaker than expected US economic data. US durable good orders came at -1.1% in Sep compared to an estimate of -0.5% and business investment declined for 2nd consecutive month. The chance of 25bps has increased to 93.5% from 90.9% 1-week ago, according to the CME Fed watch tool.

ECB has kept its rates and forward guidance unchanged and expects GDP for this year at 1.1%and 1.2% in 2020. US10-year yield has formed a temporary top around 1.81% and shown a minor dip of more than 5%.

Technically, near term support is around $1486 (55-day EMA) and any violation below will drag the yellow metal down till $1473/$1458. Major weakness only below $1458.

The near-term resistance is around $1512-15 and any convincing break above will take the yellow metal till $1525/$1540. Any bullish continuation only above $1555.

It is good to buy on dips around $1501-02 with SL around $1494 for the TP of $1525.