FxWirePro: Gold trades higher on weak US dollar, good to buy on dips

Gold is trading slightly higher and jumped more than $15 from a low of $1461 made on Friday. The demand for Safe-haven assets like yen, gold got declined in hopes of phase one deal within this year. It hits a high of $1486 and is currently trading around $1476.94.

According to the CME Fed watch tool, the probability of rates unchanged increased from 88.7% to 100%. US 10-year yield surged sharply more than 8% from a low of 1.775%. The spread between US 10-year and 2-year widened to 22.9 bps from 12.9 bps.

On the flip side, near-term support stands at $1456, violation beneath will drag the yellow metal down till $1450/$1445. Bearish continuation only underneath $1445.

The near-term resistance is at $1485, any indicative break beyond targets $1500/$1525.

It is good to buy on dips around $1465-66 with SL around $1455 for the TP of $1485/$1497.