Gold has recovered sharply more than $40 on renewed trade escalation between US and China.US ISM manufacturing data came in at 51.2 from 51.7 in June compared to a forecast of 51.9 lowest reading since Aug 2016. US dollar index has declined more than 50 pips after hitting a fresh 27 month high around 98.93 yesterday. The yellow metal hits high of $1449 and is currently trading around $1434.39.
US 10 year bond yield slumped nearly 18 basis points on hopes of more rate cut and weak US ISM manufacturing data. It hits a low of 1.876% and is currently trading at around 1.892%.
On the flip side, near term support is around $1430 and any violation below will drag the yellow metal down till $1320-22.
The near term major resistance is around $1450 and any break above will take the gold till $1465/$1500.
It is good to buy on dips around $1410-12 with SL around $1400 for the TP of $1450.
