Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $1988.76
Kijun-Sen- $2008.40
Gold prices showed a minor pullback on board-based US dollar selling. It hits a high of $2001.24 and is currently trading around $1998.28.
US dollar index-Bearish. Minor support around 100.75/100. The near-term resistance is 101.60/102.15.
Major economic data
Apr 20th, 2023 US Initial jobless claims (12:30 pm GMT).
Philly Fed manufacturing (2:00 pm)
Existing Home Sales (2:00 pm)
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in May increased to 83.4% from 67% a week ago.
The US 10-year yield pared its gains ahead of US economic data. The US 10 and 2-year spread narrowed to -65% from -108%.
Factors to watch for gold price action-
Global stock market- bullish (negative for gold)
US dollar index - Bearish (positive for gold)
US10-year bond yield- bearish (positive for gold)
Technical:
The near–term support is around $1980, a break below targets of $1969/$1955.The yellow metal faces minor resistance around $2020, and a breach above will take it to the next level of $2050/$2070.
It is good to buy on dips around $1980 with SL around $1960 for TP of $2040/$2070.
