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FxWirePro: Gold trades flat, markets eye ECB monetary policy

Gold continues to trade flat more than 10 days as markets eyes fresh trigger for further movement. The easing US-Chin trade tension is one of the reasons which is protecting the yellow metal to jump above a 6-year high $…

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FxWirePro: Gold trades flat, markets eye ECB monetary policy
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Gold continues to trade flat more than 10 days as markets eyes fresh trigger for further movement. The easing US-Chin trade tension is one of the reasons which is protecting the yellow metal to jump above a 6-year high $1555. But Brexit and other Geopolitical risks are preventing gold from further selling. Markets eye Draghi final ECB meeting for further direction.

Investors expect ECB to keep rates unchanged in the first half of 2020 and cut possible only in Sep 2020. US10-year yield has formed a temporary top around 1.81% and shown a minor dip of more than 5%.

Technically, near term support is around $1473 low made on Oct 11th, 2019 and any violation below will drag the yellow metal down till $1458. Major weakness only if it breaks $1458.

The near-term resistance is around $1500 and any convincing break above will take the yellow metal till $1512-15/1525. Any bullish continuation only above $1555.

It is good to sell on rallies around $1498-99 with SL around $1510 for the TP of $1460.
 

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