Major support- $1480
Major resistance - $1528
Gold is consolidating after hitting a high of $1527 yesterday. The yellow metal jumped more than $40 as tension on Middle East tension. US has planned to deploy more troops in the Gulf region and missile defense equipment to Saudi Arabia and UAE. It hits low of $1483 after hawkish Fed rate cut. The short-term trend is still bullish as long as support $1480 holds. It is currently trading around $1521.
US 10-year bond yield is trading slightly higher and jumped more than 4% and currently trading around 1.719%. The spread between US-10 -year and 2-year has narrowed sharply to 2.9 bps from 9 bps.
On the flip side, major support is around $1480 and any violation below will drag the gold till $1462 (23.6% fib)/$1440.
The near resistance is around $1525 and any minor bullishness can be seen above this level. Any break above targets $1540/$1555.
It is good to buy on dips around $1510-12 with SL around $1500 for the TP of $1540/$1555.
