Major Support- $1445
Gold continues to trade weak on US-China trade optimism. strong US dollar. China has drafted new guidelines for protecting intellectual property rights which increases hopes of phase 1 deal. The US dollar index has once again declined slightly after hitting a high of 98.40. It has formed double top around 98.45 and further minor jump can be seen only above that level.T he yellow metal hits low of $1451.50 and is currently trading around $1455.
The US 10- year bond yield is consolidating after hitting a low of 1.733%. The spread between US 2and 10-year has narrowed to 15.9 bps from 27 bps.
According to the Fed Watch tool, the probability of the Fed to keep rates unchanged has increased to 93.4% from 91.1% 1-day ago, the chance of rate hike increased to 6.6% from 8.9%.
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 sell on rallies around $1465-67 with SL around $1478 for the TP of $.
