Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1931.79
Kijun-Sen- $1926.46
Gold jumped sharply after weak US economic data. It hit a high of $1949.07 and is currently trading around $1944.86.
The US private sector has added 177000 jobs in August, below expectations of 194000. The US economy increased at an annualized pace of 2.1% in the second quarter, compared to a forecast of 2.4%.
Aug 31st, 2023, Core PCE index m/m (12:30 pm GMT)
Unemployment claims
US dollar index- Bearish. Minor support around 103/102. The near-term resistance is 105/106.
According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 88.50% from 88% a week ago.
The US 10-year yield hits a fresh two-week low on dismal US economic data. The US 10 and 2-year spread narrowed to -77.6% from -86.4%.
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 $1933, a break below targets of $1920/$1900. The yellow metal faces minor resistance around $1950 and a breach above will take it to the next level of $1970/$2000.
It is good to buy on dips around $1932-33 with SL around $1920 for TP of $1970/$2000.
