Gold has shown a minor decline after hitting a 6-year high of $1555. The yellow metal was one of the best performers in the past 3 months and jumped more than $250 on account of trade uncertainty and declining US bond yield. The yellow metal hits low of $1525 and shown a minor jump from that level. It is currently trading around $1534.44.
US 10 year bond yield lost more than 50% from a high of 3.25% and hits 3year low around 1.44%. It is currently trading at 1.478%. The yield curve between US 10 year and 2-year got inverted which increases the chance of recession.
On the lower side, near term support is around $1514 (23.6% fib) and any violation below will drag the yellow metal down till $1500/ $1486 (21- day MA)/$1460.The major weakness can be seen only below $1437.
The near term resistance is around $1565 and the indicative break above targets $1580/$1600.
It is good to buy on dips around $1500 with SL around $1480 for the TP of $1560.
