Major support $1480
Major resistance $1502
Gold has once again recovered slightly after hitting a low of $1486 yesterday. Markets are awaiting ECB policy today for further direction. The central bank is expected to restart asset purchases by 30 or 50 bn and to cut deposit rates by 20 bps. The yellow metal will show an upside if they announce a stimulus package. It is currently trading around $1496.50.
US 10-year yield is consolidating after a more than 23% from low of 1.428% and spread has widened to 5 bps from - 5 bps.
Technically, the pair is facing strong support at $1478 and any violation below confirms minor trend reversal, a dip till $1461/$1440 likely.
The near term resistance is around $1502 and any break above will take the yellow metal till $1515/$125. Any major bullish continuation only above $1555.
It is good to go long only above $1502 with SL around $1490 for the TP of $1540.
