Gold is trading in a narrow range between $1449 and $1486 for the past 3-week. President Trump will be 3rd President in US history to be impeached for abuse of power and obstruction in Congress. The vote on abuse of power was 230-197 and on obstruction of Congress 229-198. Markets were silent since investors confident that Trump will not be removed from office. It high of $1479.43 yesterday and is currently trading around $1476.06.
According to the CME Fed watch tool, the probability of rates on hold remain unchanged at 97.8% and the chance of 25 bps hike in rates increased to 2.2% from 0%. US 10-year yield recovered more than 6.5% from a low of 1.815%. The spread between US 10-year and 2-year widened to 28 bps from 12.9 bps.
On the flip side, near-term support stands at $1456, violation beneath will drag the yellow metal down till $1450/$1445. Bearish continuation only underneath $1445.
The near-term resistance is at $1485, any indicative break beyond targets $1500/$1525.
It is good to buy on dips around $1468-69 with SL around $1460 for the TP of $1497.
