FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $2046.68

Kijun-Sen- $2029.30

Gold prices showed a minor sell-off after hitting a lifetime high of $2081. The yellow metal gained momentum after the dovish Fed rate hike. Markets eye US Nonfarm payroll data for further direction. It hits a low of $2030 and is currently trading around $2049.66.

The European central bank hiked rates by 25 bpbs as expected to 3.75%. It says that the inflation outlook stays "too high for too long". The number of people who have filed for unemployment benefits rose by 13000 to 242000 in the week ending Apr 29th, compared to a forecast of 240000.

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 June increased to 95.6% from 62.20% a week ago.

 The US 10-year yield jumped more than 2.5% ahead of US nonfarm payroll. The US 10 and 2-year spread narrowed to -41% 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, and 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.