Gold is consolidating in a narrow range between $1473 and $1517 for the past 3 weeks and is waiting for major events for further direction. This week's movement on the yellow metal depends on the US Federal funds rate and their dot plot for a future rate cut. Any dovish rate cut by the Fed will push the gold prices further higher, the hawkish cut will drag the yellow metal slightly lower, good to buy on dips. The chance of 25bps has increased to 94.1% from 89.8% 1-week ago, according to the CME Fed watch tool.
Major economic data to be released this week such as ADP Non-Farm employment, advance GDP, NFP will also have an impact on price movements. US10-year yield has broken a temporary top around 1.81%, a jump till 1.907% likely.
Technically, near term support is around $1473 and any violation below will drag the yellow metal down till $1458. Major weakness only below $1458.
The near-term resistance is around $1512-15 and any convincing break above will take the yellow metal till $1525/$1540. Any bullish continuation only above $1555.
It is good to buy on dips around $1495-96 with SL around $1480 for the TP of $1555.


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