FxWirePro: Gold Daily Outlook

Gold is trading in a narrow range after hitting a 6-year high of $1555. The yellow metal was trading higher in the previous week and jumped more than $50 on US-China trade war escalation and declining US bond yield. The yellow metal hits low of $1525 and shown a minor jump from that level. It is currently trading around $1542.77. Markets eye US Prelim GDP q/q for further direction.

US 10 year bond yield lost more than 13% from a previous week high of 1.66% and hits 3-year low around 1.44%. It is currently trading at 1.478%. The yield curve between US 10 year and 2-year got inverted by 5 bps point highest since 2007.

On the lower side, near term support is around $1525 (Aug 26th, 2019) and any violation below will drag the yellow metal down till $1500/ $1486 (21- day MA)/$1460.The major weakness can be seen only below $1437.

The near term resistance is around $1565 and the indicative break above targets $1580/$1600.

It is good to buy on dips around $1520-25 with SL around $1500 for the TP of $1560.