FxWirePro: Gold Weekly Outlook
Gold is highly volatile in the previous week and is trading in a narrow range between $15255 and $1480. The slight easing of the US-China trade war and spurt in bond yield is putting pressure on the yellow metal. But it surged more than $20 on geopolitical tension in the Middle East after a drone attack on Saudi oil production. It hits a high of $1512 and is currently trading around $1506.
Markets eye US Fed monetary policy for further direction and the chance of 25 bps rate cut has declined from 94.6% 1- a week ago to 84.2%.
On the flip side, major support is around $1475-80 and any violation below will drag the yellow metal till $1460/$1444.
The near term major resistance is around $1525 and any convincing break above will take the yellow metal till $1540/$1555.
It is good to sell on rallies around $1528-30 with SL around $1541 for the TP of $1555.