FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour Chart)

Tenken-Sen- $1715.28

Kijun-Sen- $1709.85

Gold pared some of its gains after ECB monetary policy. The central bank hiked rates by 75 bpbs and planning to go for further hikes to fight against inflation. Powell's hawkish comments yesterday also put pressure on the yellow metal at higher levels. Global recession fears due to the energy crisis have increased demand for safe-haven assets like Gold.

The number of people who have filed for unemployment benefits fell by 6000 last week to a three-week low of 222K vs. an estimate of 234000.

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 84% from 77% a week ago.

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 $1690, a close below targets $1671/$1650/$1600. Significant reversal only below $1650. The yellow metal faces minor resistance around $1720, breach above will take it to the next level of $1740/$1760/$1775/$1800/$1820.

It is good to buy on dips around $1678-80 with SL at around $1650 for TP of $1750/$1775.