FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1766.35

Kijun-Sen- $1746.05

The gold price gained more than $15 after the US ISM manufacturing PMI report. It came at 52.8% in July, the lowest reading since June 2020. US dollar index hits a fresh three-week low at 105.24 yesterday. Sell-off in US treasury yields also supported the yellow metal at lower levels. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Sep rose to 79.5% from 72.5% a week ago.

Factors to watch for gold price action-

Global stock market- Bullish (negative for gold)

US dollar index – Bearish (Negative for gold)

US10-year bond yield- Bearish (Negative for gold)

Technical:

The near–term support is around $1760, a breach below targets $1742/$1720/$1680.Significant reversal only below $1600. The yellow metal faces minor resistance around $1780, breach above will take it to the next level of $1790/$1803/$1820.

It is good to buy on dips for around $1760 with SL around $1740 for TP of $1800/$1820.