FxWirePro: Gold trades slightly weak on trade deal hopes, markets eye Fed

Gold has once again declined after hitting high of $1354 yesterday. The renewed trade deal hopes and a strong dollar is putting pressure on yellow metal at higher levels. Any major move can be seen only after the Fed monetary policy. Markets expect the central bank to be dovish and to cut rates by 25bpbs. It hits low of 1339 and is currently trading around $1345.44.

 US Dollar Index -Intraday Trend bullish. US Dollar index has shown good jump after more dovish Draghi's speech. The index hits high of 97.77 and is currently trading around 97.65.

US 10 year yield- Overall trend negative. The 10 -year yield recovered more than 3% after hitting multi-year low at 2.018%. The jump came after President tweeted that he will be meeting Chinese President Xi Jinping in the G-20 meeting.

S&P500: Intraday trend - bullish. It has recovered more than 1.5% from low of 2866 on fresh stimulus hopes from ECB and trade deal optimism. The near term resistance is around 2930 and any violation above targets 2950. It is currently trading around 2923.50.

On the higher side, near term resistance is around $1365-66 and any convincing break above targets $1380/$1398. Major trend reversal only above $1366.

The near term support is around $1332 (10- day MA) and any break below confirms minor weakness a dip till $1323 (38.2% fib)/$1318. Any major weakness only below $1318.

 It is good to buy on dips around $1338-39 with SL around $1332 for the TP of $1358.