FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1737.89

Kijun-Sen- $1748.10

Gold price trading was highly volatile yesterday and showed a wild spike of more than $20 from a low of $1723.29. The bullish US dollar index in hopes of aggressive rate hikes puts pressure on the yellow metal at higher levels. US dollar index continues to gain and hits the highest level since Oct 2002 on recession worries and inflation concerns. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul rose to 90.6% from 86.2% a week ago.

According to New York's Fed consumer expectations, one-year inflation forecasts rose to 6.8% from 6.6% in June.

Factors to watch for gold price action-

Global stock market- mixed (neutral for gold)

US dollar index – Bullish (negative for gold)

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

Technical:

The near–term support is around $1723, a breach below targets $1700/$1650—significant reversal only below $1700. The yellow metal faces minor resistance around $1760, any breach above will take it to the next level of $1780/$1800.

It is good to sell on rallies around $1750-52 with SL around $1770 for TP of $1700.