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FXWirePro: Gold struggles to hold above $1500 on trade optimism, good to sell on rallies

FXWirePro: Gold struggles to hold above $1500 on trade optimism, good to sell on rallies

Gold has shown a good recovery of more than $20 after ECB monetary policy. The central bank has cut its deposit rate by 10 bps to -0.50% and starts a new stimulus program of 20 bn euros bond purchase. The yellow metal hits high of $1524 and started to decline sharply on positive comments by Trump US-China trade talks. It is currently trading around $1499.

US CPI came at 1.7% compared to an estimate of 1.8% y/y and weekly initial jobless at 204K vs forecast 205K. Markets eye US retail sales data which is to be released today for further direction.

Technically, major support stands at $1480 and any further bearishness can be seen only below $1460/$1440.

The near term resistance is around $1525 and any violation will take the yellow metal to $1540/$1555.

It is good to sell on rallies around $1525-28 with SL around $1540 for the TP of $1484.

By Rangarajan Hariharan
  • Market Data
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