Major Support - $1460
Gold is trading weak and struggling to hold above $1500 level on easing US-China trade uncertainty. US Treasury Secretary Steven Mnuchin said on Monday that both countries reached “fundamental agreement” during talks. The yellow metal hits low of $1477 and is currently trading around $1482. Short term trend is weak as long as resistance $1555 holds.
US 10-year bond yield continues to trade higher and jumped more than 6% from low of 1.68%. The spread between US 10-year and US 2-year spread widened to 14.7 bps.
Technically, the near term major support is around $1458 low made on Oct 1st and any violation below will drag the gold till $1444/$1429.
The near term resistance is around $1500 and any convincing break above targets $1515/$1525/$1555.
It is good to sell on rallies around $1485-86 with SL around $1500 for the TP of $1444/$1429.
