Gold is trading lower for 3rd consecutive day and lost nearly $25 on US-China trade talks optimism. The weak economic data has increased the chance of more rate cuts by the Fed in the coming months. US Conference Board Consumer confidence came at 125.8 compared to forecast of 128.2, the chance of 25 bps rate cut has increased to 97.3% from 94.1% 1-week ago. Markets eye US FOMC meeting and press conference for further direction.
US10-year yield is trading slightly lower after showing more than 20% this month. The spread between 10 -year and 2-year has widened to 18 bps.
Technically, near term support is around $1480 and any violation below will drag the yellow metal down till $1473/$1458. Major weakness only below $1458.
The near-term resistance is around $1515-17 and any convincing break above will take the yellow metal till $1525/$1540. Any bullish continuation only above $1555.
It is good to buy on dips around $1495-96 with SL around $1480 for the TP of $1555.
