Gold recovered sharply and jumped more than $10 after ECB monetary policy. The central bank cuts deposit rates by 10 bps to -0.50 bps and announced QE of 20 billion euros, with effective from Nov 1. It has introduced a rate tiering system and a change in guidance. US CPI data came at 1.7% vs 1.8% y/y forecast and weekly initial jobless at 204K vs estimate 205K. The yellow metal hits an intraday high of $1524 and is currently trading around $1518.
On the flips side, major weakness can be seen below $1480 and any break below confirms bearish continuation, a dip till $1460/$1442.
The near term resistance is around $1528 and any convincing break above targets $1540/$1555.
It is good to buy on dips around $1510-12 with SL around $1500 for the TP of $1540.
