FxWirePro: Gold trades flat, markets eye US Fed policy

Major support - $1412

Gold is consolidating in a tight range between $1433 and $1410 for the past four trading days. Markets eye US Fed monetary policy meeting by Wednesday for further direction. The central bank is expected to cut rates in the policy meeting on Wednesday. According to the CME Fed Watch tool, there is a 73.1% probability of 25 bps rate cut and 26% chance of 50 bps rate cut. US dollar index is holding above 98 level and any major trend reversal only above 98.35.

US 10 year bond yields are trading flat after hitting high of 2.10% yesterday It is currently trading around 2.068%.Major bullishness only above 2.15%.

On the flip side, $1410-$1412 will be acting as major intraday support and any convincing break below will drag the yellow metal down till $1400/$1390. Any violation below $1380 confirms bearish continuation.

The yellow metal is facing strong resistance around $1440 and any break above targets $1452. Bullish continuation only above $1452. The minor resistance is around $1425/$1434.

It is good to sell on rallies around $1424-25 with SL around $1433 for the TP of $1381.