Gold recovered sharply from yesterday’s low of $2492. It hits a high of $2521 at the time of writing and is currently trading around $2517.
Markets eye US GDP and initial jobless claims for further direction.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased to 65.50% from 64% a day ago.
US dollar index- Bearish. Minor support around 100.60/100. The near-term resistance is 101.35/102.
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 $2499 (55 -4H EMA), a break below the target of $2470/$2449. The yellow metal faces minor resistance around $2525 and a breach above will take it to the next level of $2535/$2554.
Indicator (4-hour chart)
CCI (14)- Bullish
CCI (50)- Bullish
Average directional movement Index - Neutral. So good to go to buy on dips.
It is good to buy on dips around $2450 with an SL around $2430 for a TP of $2525/$2550.
