FxWirePro: GBP/AUD falls sharply after UK fiscal event and UK PMI data, could be on verge of a bigger drop
FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4-hour Chart)
Gold price pared some of its gains after the Fed minutes meeting. The meeting shows that the central bank to continue rate hikes until inflation cools off. US dollar index regained above 106.50 and holds above that level. Any surge past 107confirms further bullishness. US retail sales came unchanged at 0% compared to a forecast of 0.1%.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Sep rose to 61% from 59% a day ago.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index – Bullish (Negative for gold)
US10-year bond yield- Bearish (positive for gold)
The near–term support is around $1760, a breach below targets $1750/$1740/$1720. Significant reversal only below $1650. The yellow metal faces minor resistance around $1820, breach above will take it to the next level of $1840/$1860/$1870.
It is good to sell on rallies around $1771-72 with SL at around $1800 for TP of $1740.
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