Major intraday support - $1480
Gold has shown a massive jump of more than $70 a previous week on account of declining US bond yield and US-China trade escalation. US 10 year yield declined more than 13% from close to 1.849%. But yield to trade lower as market participants expect aggressive rate cuts by the Fed. According to the CME Fed Watch tool, the probability of 25 bps has increased from 84.6% to 88.1% and the chance of 50 bps cut declined to 11.9% from 15.4%. It is currently trading around $1496.17.
On the higher side, near term resistance is around $1520-25 and any violation above will take the yellow metal till $1540/$1585.
The near term major support is around $1480 and any break below will drag the gold till $1462/$1455/$1440.
The market is in the overbought zone with RSI at 82 so minor dip till $1440-50 is possible.
It is good to sell on rallies around $1505-10 with SL around $1525 for the TP of $1440.
