FxWirePro: Gold trades higher on political uncertainty, good to buy on dips

Major support- $1480

Major resistance - $1528

Gold has jumped sharply and hits the highest level in 2 -weeks on geopolitical tension and weak US economic data. The demand for Safe-haven increased sharply yesterday after the US House of representatives launched a formal impeachment inquiry into Donald Trump. The yellow metal hits high of $1535 and is currently trading around $1527.The short-term trend is still bullish as long as support $1480 holds.US Conference Board consumer confidence came at 125.1 in Aug compared to a forecast of 133.

US 10-year bond yield continues to trade lower and lost nearly 15% from high. It is around 1.65% at the time of writing. The spread between US-10 -year and 2-year has narrowed sharply to 3 bps from 9 bps.

On the flip side, major support is around $1480 and any violation below will drag the gold till $1462 (23.6% fib)/$1440.

The near resistance is around $1540 and any minor bullishness can be seen above this level. Any break above targets $1555. Major bullish continuation only above $1555.

It is good to buy on dips around $1515-16 with SL around $1503 for the TP of $1540/$1555.