Major support: $1445 (38.2% fib)
Gold is consolidating in a narrow range after a minor jump till $1478 yesterday. The Fed minutes clearly said that the current policy "likely would remain so long as incoming information about the economy did not result in a material reassessment of the economic outlook,". The summary said that "Uncertainties associated with trade tensions as well as geopolitical risks had eased somewhat, although they remain elevated," the summary said. The yellow metal jumped till $1476.60 and is currently trading around $1460.
US 10-year bond yield continues to trade weak and lost more than 7% this week. It is currently around 1.73%. The spread between 10 and 2-year yield narrowed sharply to 16.2 bps from 27.8 bps.
According to the Fed Watch tool, the probability of the Fed to keep rates unchanged has decreased slightly from yesterday's 98.5% to 96.3% today and the chance of rate hike jumped to 3.7% from 1.5%.
On the flip side, near-term support stands at $1456, violation below will drag the yellow metal down till $1445/$1430/$1413 possible.
The near-term resistance is at $1480, any indicative break above targets $1500/$1525.
It is good to buy on dips around $1460-62 with SL around $1450 for the TP of $1500/$1525.
