FxWirePro: Gold Daily Outlook

Gold has shown a good recovery of nearly $20 from low of $1475 due to weak US economic data. US retail sales have declined for the first time in 7 months and came at -0.3% compared to an estimate of 0.3%. This has increased hopes of a further rate cut by the Fed. It hits a high of $1493 and is currently trading around $1490.85.

According to the CME Fed Watch, the probability of rate cut increased to 88.2% from 82.3% a week ago. Markets eye US Philly fed manufacturing index data for further direction.

On the flip side, near term support is around $1472 and any violation below targets $1458. Major trend reversal only below $1458.

The near-term resistance is around $1500 and any convincing break above will take the yellow metal till $1512-15/1525. Any bullish continuation only above $1555.

It is good to sell on rallies around $1495-96 with SL around $1501 for the TP of $1460.