Major support - $1445
Gold continues to trade weak on US-China trade optimism and strong US dollar. The US and China trade talks were in the "final throes". Two countries are"getting close" to strike a preliminary deal, according to senior adviser of President Donald Trump. The US dollar index is consolidating in a narrow range and any break above 98.45 confirms major bullishness. The yellow metal hits low of $1449.92 and is currently trading around $1458.62.
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 decreased to 94.8% from 98.5% 1-week ago, the chance of rate hike increased to 5.2% from 1.5%.
On the flip side, near-term support stands at $1445, violation below will drag the yellow metal down till $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 $.
