Gold has declined nearly $10 in the European session on fresh US-China trade optimism. European shares hit 4- year high after China said that both countries have agreed to cancel existing tariffs in different phases. The easing trade tension increased demand for riskier assets, treasuries.
US 10-year has shown a nice recovery of more than 4.5% to 1.88% and is currently trading at around 1.883%. The spread between US -10 and 2-year has widened by 23 bps.
Technically, near term support is around $1480, any violation below will drag the yellow metal down till $1473/$1458. Major weakness only below $1458.
The near-term resistance is around $1515-17, a convincing break above will take the yellow metal to the next level $1525/$1540. Any bullish continuation only beyond $1555.
It is good to sell on rallies around $1485-86 with SL around $1495 for the TP of $1458.
Support
S1-$1480
S2- $1473
S3-$1458
