Gold is holding above $1500 level after weak US ISM services data. It came at 52.6% at the lowest level since Sep 2016. The slump in US manufacturing and services PMI confirms the weakness in the US economy. The US 10-year yield continues to trade lower and lost more than 14% in this month. The demand for Safe-haven has increased on the chance of a rate cut by the Fed in the next meeting and the US-EU trade war. The yellow metal hits high of $1519 and is currently trading around $1508.34. Markets eye US Non-farm payroll for further direction.
On the flip side near term support is around $1480 and any violation below will drag the yellow metal down till $1470/$1460. Bearish continuation only below $1450.
The near term resistance is around $1525 and any break above will take the gold till $1540/$1555.
It is good to buy on dips around $1490-92 with SL around $1480 for the TP of $1525/$1540.
