FxWirePro: Gold trades above $1500 on weak US dollar, good to buy on dips

Gold is trading higher for 2nd consecutive day and jumped more than $30 on the weak US dollar. DXY continues to trade weak and any break below 97 confirms further bearish continuation. The Core personal consumption expenditures (PCE), which exclude food and energy increased by 1.7% still from 1.8%. Chicago PMI declined to 43.2 in Oct from 47.1 prior months, the lowest level since Dec 2015.

US10-year yield has declined more than 9% from 1-1/2 month high 1.86% and is trading around 1.696%. The spread between 10 -year and 2-year has narrowed to 15 bps.

Technically, near term support is around $1480, any violation below will drag the yellow metal down to the next level  $1473/$1458. Major weakness only under $1458.

The near-term resistance is around $1515-17, the convincing break above will take the yellow metal till $1525/$1540. Any bullish continuation only beyond $1555.

It is good to buy only above $1515 with SL around $1505 for the TP of $1555.