Gold is holding above $1500 level on US-China trade escalation. The department of commerce has added new 28 companies in blacklist which includes major one in artificial intelligence, machine learning, and digital surveillance. The yellow metal has recovered more than $20 from a low of $1486 and is currently trading around $1505.
The US-10 year bond yield continues to trade lower and lost more than 4% from temporary top around 1.59%. The spread between US-10 year and 2-year has narrowed slightly to 12 bps from 16 bps.
On the flip side, the near term major support is around $1480 and any violation below will drag the yellow metal till $1460. Any bearish continuation only below $1460.
The near term resistance is around $1525 and any break above that level targets $1540/$1555.
It is good to buy on dips around $1492-93 with SL around $1480 for the TP of $1525.
