FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1766.35

Kijun-Sen- $1746.05

The gold price pared some of its gains as the US dollar flourished after a hawkish statement by Fed speakers. Risk-free assets gaining strength due to geo-political tension between China and Taiwan. The minor pullback in US 10-year bond yield also puts pressure on the yellow metal at lower levels. Market eyes US ISM services data today for further direction. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 40.50% from 29% a day ago.

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 $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 $1750 with SL around $1735 for TP of $1800/$1820.