Major support- $1458
Gold has declined sharply on US-China trade optimism and rising US bond yield. US dollar index is trading higher for 3rd consecutive days and jumped more than 100 pips. Any break above 98.31 (50-day MA) confirms further jump till 99. The US and China have agreed to roll back some tariffs which are putting pressure on safe-haven assets like yen, gold. US initial jobless claims declined by 8000 to 211000 compared to a forecast of 215000. The yellow metal hits low of $1460.48 and is currently trading around $1470.28.
US 10-year yield jumped more than 9% for the day on trade optimism. It hits a high of 1.97% and is currently trading at around 1.817%.
On the flip side, near term support is around $1458, any violation below will drag the yellow metal down till $1440. Major bearishness only below $1458.
The major resistance is around $1480, the indicative break above will take the gold to the next level $1495/$1500.
It is good to sell on rallies around $1478-80 with SL $1490 for the TP of $1470.
