FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1849.91

Kijun-Sen- $1848.38

Gold price consolidating on strong US dollar.  Markets eye US CPI data for further direction. The ECB has kept its rates unchanged and ended the asset purchase program. It also hinted at a 25 bpbs rate hike in Jul and may be larger in Sep. Euro lost its shine on less hawkish monetary policy by ECB. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul increased to 21.5% from 13 % a week ago. It hits an intraday low of $1844.41 and is currently trading around $1844.45.

Factors to watch for gold price action-

Global stock market- Bearish (Positive for gold)

US dollar index –Bullish (negative for gold)

US10-year bond yield- Bullish (negative for gold)

Technical:

The near–term support is around $1828, a breach below targets $1820/$1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1875, any breach above will take to the next level $1880/$1900/$1920.

It is good to sell on rallies around $1849-50 with SL around $1870 for TP of $1800/$1787.