Gold is trading higher for the past two days after slight pessimism in a trade deal. China is reluctant to purchase farm products from the US. President Trump said earlier that Beijing has agreed to buy agricultural products worth $40 billion from the US.
US CPI climbed sharply to 0.4% vs estimate of 0.3%, rising most in 7 months. The annual inflation came at 1.8% YoY well below the Fed target 2%. DXY is consolidating near 98.40 level, any convincing break above 98.60 targets 99/99.35. Markets eye US-PPI data for further direction. It is currently trading around $1462.
According to the CME Fed watch tool, the probability of keeping rates unchanged has increased from 92.6% to 96.3%, the chance of 25 bps cut declined to 3.7% from 7.4%.
US 10-year yield has lost more than 5% after hitting a high of 1.97%. The yield has jumped more than 15% this month and is currently trading at 1.868%.
Technically, major support is around $1450, any break below confirms bearish continuation, a decline till $1430/$1400 likely.
The major resistance is around 1480, any indicative break up targets $1500/$1525. Major trend reversal only beyond $1555.
It is good to sell on rallies around $1468-69 with SL around $1478 for the TP of $1430/$1400.


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