FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $2380.70

Kijun-Sen- $2377.97

Gold gained slightly after a massive sell-off. The yellow metal lost its shine after upbeat US inflation data. It hit a low of  $2324 and is currently trading around $2380.05.

Fed Chairman Powell said that conditions needed to cut rates would likely take longer to appear. Markets eye Israel’s response to Iran for further movement. Any escalation in Middle East tension will push gold prices higher.

Economic data to be released today-

FOMC Member Mester Speaks

According to the CME Fed watch tool, the probability of a no-rate cut in  June increased to 84.8% from  42.60% a week ago.

 US dollar index-  Bullish. Minor support around 105.80/105. The near-term resistance is 106.50/107.40.

 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 $2370, a break below targets of $2350/$2318/$2300. The yellow metal faces minor resistance around $2400 and a breach above will take it to the next level of $2420/$2450.

It is good to buy on dips around $2338-40 with SL around $2319 for TP of $2400.