Major Support- $1445
Gold is trading in a narrow range between $1445 and $1478 for the past 3 weeks. But the overall trend is still weak as long as resistance $1480 holds. The strong US dollar and trade optimism is putting pressure on safe-haven assets like yen, gold. The US dollar index has formed a minor top around 98.54 and shown a minor decline. The yellow metal hits low of $1449.50 previous week and is currently trading around $1454.95.
The US 10- year bond yield trades slightly higher and jumped more than 5%. The spread between US 2and 10-year has widened slightly from 12.6 bps from 18 bps.
According to the Fed Watch tool, the probability of the Fed to keep rates unchanged has increased to 94.8% from 91.1% 1-week ago, the chance of rate hike declined to 5.2% from 8.9%.
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 sell on rallies around $1465-67 with SL around $1478 for the TP of $.
