Gold is trading weak for the 5th consecutive week on easing US-China trade tension and strong US strong jobs data. US economy has added 266000 jobs in Nov compared to a forecast of 181K, fastest pace in 10 months. The US dollar index has formed a minor bottom near 97.36 and shown a good recovery of 50 pips to 97.84. the yellow metal hits low of $1458.57 previous week and is currently trading around $1462.39.
US 10-year yield is trading higher for the past 1- week and jumped more than 10% from low of 1.693%. The spread between US 10-year and 2-year has narrowed to 22.4 bps.
According to the Fed Watch tool, the probability of the Fed to keep rates unchanged has increased to 99.3% from 92.6% 1-week ago, the chance of rate hike declined to 0.7% from 7.4%.
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 $.
