FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $2049.31

Kijun-Sen- $2044.66

Gold prices hit a lifetime high after Fed monetary policy. The central bank hiked rates by 25 bpbs to 5-5.25%, the highest since mid-2007. "The committee will closely monitor incoming information and assess the implications for monetary policy," the Federal Open Market Committee said in a statement Wednesday.

The US economy has added 296000 private sector jobs in Apr compared to a forecast of 148000. S&P Global  US services PMI came at 53.60 vs an estimate of 53.70.

US dollar index- Bearish. Minor support around 100.80/100. The near-term resistance is 101.60/102.40.

 According to the CME Fed watch tool, the probability of a no-rate hike in May increased to 88.60% from 63.80% a week ago.

 The US 10-year yield declined more than 3% after a less hawkish rate hike by Fed. The US 10 and 2-year spread narrowed to -44% from -108%.

  Factors to watch for gold price action-

   Global stock market- bullish (negative for gold)

  US dollar index - Bearish (positive for gold)

  US10-year bond yield- bearish (positive for gold)

Technical:

The near–term support is around $2030, a break below targets of $2000/$1970/$1955/$1935.The yellow metal faces minor resistance around $2070; a breach above will take it to the next level of $2100/$2150.

  It is good to buy on dips around $2020 with SL around $2000 for TP of $2070/$2100.