Major Support- $1445
Gold is trading in a tight range between $1445 and $1483.95 for the past 1- month. The yellow metal was one of the worst performers for the past 3 months and lost more than 7% on easing trade tension. The trade optimism between the US and China has decreased demand for safe-haven assets like the gold, yen. Markets eye US Fed monetary policy tomorrow for further direction. The central bank is expected to keep rates unchanged at 1.75%. The yellow metal hits low of $1458.57 and is currently trading around $1462.49.
US 10-year yield is trading higher for the past 1- week and jumped more than 10% from low of 1.693%. The spread between US 10-year and 2-year has narrowed to 19.9 bps.
According to the Fed Watch tool, the probability of the Fed to keep rates unchanged has increased to 99.3% from 95.6% 1-week ago, the chance of rate hike slightly jumped to 0.7% from 0%.
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 stay away until the Fed meeting.
