FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4-hour Chart)
Gold price is trading weak for the past five days on the strong US dollar. It hits three weeks high on aggressive rate hike expectations. Any jump above 108 confirms further bullishness. US Philly fed manufacturing index rose to 6.2 in Aug compared to an estimate of -5. The number of people who have filed for unemployment benefits dropped to 250000 below expectations of 265K.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Sep rose to 59.5% from 57% a week ago.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index – Bullish (Negative for gold)
US10-year bond yield- Bullish (negative for gold)
The near–term support is around $1750, a breach below targets $1740/$1720/$1700. Significant reversal only below $1650. The yellow metal faces minor resistance around $1820, breach above will take it to the next level of $1840/$1860/$1870.
It is good to sell on rallies around $1771-72 with SL at around $1800 for TP of $1740.