FxWirePro: Gold recovers on renewed trade war tension, minor bullishness only above $1466
Major Support- $1445
Gold has shown a good recovery of more than $10 after President Trump tweet on the tariff. Trump said on Monday that the US will impose tariffs on steel and aluminum from Argentina and Brazil of devaluing their currencies which is hurting farmers. The renewed trade tension has increased demand for Safe-haven assets like yen, gold, etc. The yellow metal hits low of $1449.50 previous week and is currently trading around $1454.95.
US ISM manufacturing data slumped in Nov to 48.1% less than the forecast of 49.4% and 48.3% in Oct. DXY lost more than 50 pips after the release of data and hits low of 97.81.
The US 10- year bond yield trades slightly higher and jumped more than 1.5% for the day. The spread between US 2and 10-year has widened slightly from 12.6 bps from 21 bps.
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 $1430.
