FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour  chart)

Tenken-Sen- $1970.77

Kijun-Sen- $1972.55

Gold prices pared some of their gains on rising US bond yields. US Fed officials are unsure that there will be a pause in rate hikes this year even if the central bank skip in June. The hawkish pause by Fed put pressure on yellow metal at higher levels. It hits a low of $1960 and is currently trading around $1963.93.

US President Biden and McCarthy's latest talks on the debt ceiling are productive but no deal has been reached.

Major economic data for the day

May 23rd, 2023, US Flash manufacturing  and services PMI  (1:45 pm GMT)

    New home sales   (2:00 pm GMT)

 US dollar index- Bullish. Minor support around 102.30/101.50. The near-term resistance is 103.65/105.

 According to the CME Fed watch tool, the probability of a no-rate hike in June increased to 84.70% from 77.50% a week ago.

 The US 10-year yield traded higher for six consecutive days. The US 10 and 2-year spread narrowed to -62% from -108%.

 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- Mixed (neutral for gold)

Technical:

The near–term support is around $1950, a break below targets of $1935/$1900.The yellow metal faces minor resistance around $1970, and a breach above will take it to the next level of $2000/$2020/$2040/$2070/$2100/$2150.

 It is good to sell on rallies around $1989-90 with SL around $2010 for TP of $1900.