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FxWirePro: Gold declines below $1500 on rising US bond yield, markets eye Jackson hole symposium
Major Support- $1490
Minor intraday resistance - $1508 (200- H MA)
Gold is consolidating in a narrow range between $1528 and $1493 for the past three trading days. Markets eye US Fed Chair Powell's speech in Jackson's hole symposium for further direction. US jobless claims dropped 12,000 to seasonally adjusted 209000 for the week ended on Aug 17. The IHS Markit Flash Purchasing Manager's Index came at 49.9 below 50 levels for the first time since Sep 2009. The yellow metal hits an intraday low of $1493.44 and is currently trading around $1495.99.
US 10 year bond yield is trading higher for the 3rd consecutive day and jumped more than 6%.US 10 year and 3-month yield got inverted by 36 basis points.
Technically on the flip side major support is around $1492 and any violation below will drag the gold to the next level till $1480/$1468 (38.2% fib).
The near term resistance is at $1508 (Aug 20th high) and any jump above will take the yellow metal till $1517/$1528. Any major bullishness only above $1535.
It is good to sell on rallies around $1500-01 with SL around $1508 for the TP of $1480.