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FxWirePro: Gold recovers sharply after dovish Fed Chairman speech, good to buy on dips

Gold has shown a massive jump of $25 after Fed Chairman testimony. Fed Chairman has reaffirmed that it would act as "appropriate to sustain expansion"According to CME, Fed fund futures there is a 100% probability of rate…

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FxWirePro: Gold recovers sharply after dovish Fed Chairman speech, good to buy on dips
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Gold has shown a massive jump of $25 after Fed Chairman testimony. Fed Chairman has reaffirmed that it would act as "appropriate to sustain expansion"According to CME, Fed fund futures there is a 100% probability of rate cut in Jul meeting. US 10 year bond yield has lost more than 3.5% and spread between US 10 year and 2 year has widened from 14 basis point to 22 basis points. It hits a high of $1427 and is currently trading around $1421.

 

On the flip side, near term support is around $1417 and any break below will drag the yellow metal to the next level till $1410/$1406/$ 1390. Major weakness only below $1380.

 

The near term minor resistance is around $1428 and any break above will take the yellow metal to $1440. Any major bullish continuation only above $1440. Any break above targets $1465.

 

It is good to buy on dips around $1410 with SL around $1400 for the TP of $1440.

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