Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1960.61
Kijun-Sen- $1973.74
Gold prices showed a nice pullback from yesterday's low of $1949.The banking crisis and hopes of a rate pause by the Fed support the yellow metal at lower levels. It hits a high of $1975.19 and is currently trading around 1967.21.
US Conference Board consumer confidence improves to 104.20, compared to a forecast of 101. Richmond Fed manufacturing index improves to -5 vs. Expected -10.
Major economic data for the day
Mar 29th, 2023 US Pending home sales m/m (3 pm GMT).
US dollar index-Bearish. Minor support around 102.50/101.80. The near-term resistance is 103.40/104.20.
According to the CME Fed watch tool, the probability of a no-rate hike in Mar decreased to 58.3% from 35.9% a week ago.
The US 10-year yield surged more than 9% after forming a minor bottom of 3.287%. The US 10 and 2-year spread narrowed to -51.4% from -108%.
Factors to watch for gold price action-
Global stock market- bearish (positive for gold)
US dollar index - Bearish (positive for gold)
US10-year bond yield- bullish (negative for gold)
Technical:
The near–term support is around $1955, a break below targets of $1944/$1935/$1921/$1890.The yellow metal faces minor resistance around $1966, and a breach above will take it to the next level of $1980/$2010/$2020.
It is good to buy on dips around $1936 with SL around $1920 for TP of $2000.
