Gold is trading in a narrow range between $1449 and $1486 for the past 3-week. The US and China trade optimism have decreased demand for Safe-haven assets like yen, gold. It hits a high of $1480.47 and is currently trading around $1476.96.
US housing data came better than expected with building permits rose 1.4% m/m at 1.4.482m in Nov vs forecast of 1.410m, housing starts at 1.365m vs 1.340m.
According to the CME Fed watch tool, the probability of rates unchanged increased from 88.7% to 97.8% and the chance of 25 bps hike in rates declined to 2.2% from 2.7%. US 10-year yield recovered more than 4% after a minor dip to 1.8185%. The spread between US 10-year and 2-year widened to 24.9 bps from 12.9 bps.
On the flip side, near-term support stands at $1456, violation beneath will drag the yellow metal down till $1450/$1445. Bearish continuation only underneath $1445.
The near-term resistance is at $1485, any indicative break beyond targets $1500/$1525.
It is good to buy on dips around $1468-69 with SL around $1460 for the TP of $1497.


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