FxWirePro: Gold trades in narrow range, markets eye US-China trade talks

Gold trades in a narrow range between $1519 and $1487 for the past four trading days and markets eye US-China trade talks for further direction. The Fed minutes show that Fed officials are too much worried about the economy in the Sep meeting and they expect further downside risks in the US. Some policymakers warned that financial markets are foreseeing more rate cuts than the Fed can deliver this year.  On the economic data front, US CPI is major data to be watched for further direction.

The US-10 year bond yield recovered more than 5% from a temporary top of around 1.59%. The spread between US-10 year and 2-year has narrowed slightly to 12 bps from 13.7 bps yesterday.

On the flip side, the near term major support is around $1480 and any violation below will drag the yellow metal till $1460. Any bearish continuation only below $1460.

The near term resistance is around $1525 and any break above that level targets $1540/$1555.

It is good to buy on dips around $1492-93 with SL around $1480 for the TP of $1525.