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FxWirePro: Gold recovers slightly on US-China trade deal uncertainty, good to sell on rallies

Major Support - $1460

 

Gold has shown minor recovery of nearly $25 on decreasing hopes of the US-China trade deal. China wants another round of talks before signing a partial deal. The high-level trade talks to resume next week. The yellow metal hits a high of $1497 and is currently trading around $1491. Short term trend is weak as long as resistance $1555 holds.

 

US 10-year bond yield halted its bullishness and dropped more than 4.5% from a high of 1.767%. The spread between US 10-year and US 2-year spread widened to 12 bps.

 

Technically, the near term major support is around $1458 low made on Oct 1st and any violation below will drag the gold till $1444/$1429.

 

The near term resistance is around $1500 and any convincing break above targets $1515/$1525/$1555.

 

It is good to sell on rallies around $1498-99 with SL around $1525 for the TP of $1444/$1429.   

 

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