FxWirePro: Gold trades higher on weak US dollar, good to buy on dips

Gold was trading higher and jumped more than $10 after the Fed kept its rates unchanged at 1.75%. The central bank has kept its GDP unchanged at 2.2% in 2019, 2.0% in 2020 and said that it will monitor global developments and muted inflation. They have reduced their fed funds estimate for 2019 to 1.6% from 1.9%. the dot plot shows that fed is to keep rates on hold until 2021.

US 10-year yield is trading lower for the past 2 days and declined more than 4% to 1.79%. The spread between US 10-year and 2-year narrowed to 18.5 bps from 22.9 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 $1465-66 with SL around $1455 for the TP of $1485/$1497.