Gold has once again declined below $1500 after a minor recovery. The US-China trade optimism and jump in US bond yield is putting pressure on the yellow metal. US CPI came slightly weaker than expected at 0.0% compared to an estimate of 0.1%. The number of people filed for the jobless claim has declined to 310000 vs 315000. The yellow metal hits an intraday low of $1486 and is currently trading around $1505.
The US-10 year bond yield recovered sharply more than 10% from a temporary top of around 1.507%. The spread between US-10 year and 2-year has narrowed slightly to 12 bps from 16 bps.
On the flip side, the near term major support is around $1480 and any violation below will drag the yellow metal till $1460. Any bearish continuation only below $1460.
The near term resistance is around $1525 and any break above that level targets $1540/$1555.
It is good to sell on rallies around $1499-500 with SL around $1512 for the TP of $1461.
