FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour  chart)

Tenken-Sen- $1954.88

Kijun-Sen- $1961.09

Gold prices trade below $1950 on upbeat market sentiment. The Republic and Democratic leaders are optimistic about current negotiations and the deal to be finalized soon. hits a low of $1936.85 yesterday and is currently trading around $1947.92.

US Q1 GDP 2023 (second reading) came at 1.3% compared to a forecast of 1.1%. The number of people who have filed for unemployment benefits increased by 4000 in the week ending May 20, below the estimate of 249K.

Major economic data for the day

May 26th, 2023, US Core PCE index m/m (12:30 pm GMT)

  Core Durable goods orders m/m (12:30 pm GMT)

Revised UoM consumer sentiment (2 pm GMT)

 US dollar index- Bullish. Minor support around 102.30/101.50. The near-term resistance is 104.20/105.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June increased to 37.8% from 35.6% a week ago.

 The US 10-year yield jumped more than 2% yesterday on our debt deal optimism. The US 10 and 2-year spread narrowed to -71% from -108%.

 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 (Bearish Mixed for gold)

Technical:

The near–term support is around $1935, a break below targets of $1920/$1900.The yellow metal faces minor resistance around $1955, and a breach above will take it to the next level of $1970/$2000/$2020/$2040/$2070/$2100/$2150.

 It is good to sell on rallies around $1955  with SL around $1970 for TP of $1920/$1900.