FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $2316.05

Kijun-Sen- $2317.06

Gold lost its shine on the strong US dollar. It hit a low of $2281.74 at the time of writing and is currently trading around $2287.

The central bank is expected to keep rates unchanged within their current range of 5.25%-5.50%. All eyes will be on the Fed’s dot plot for further movement.

According to the CME Fed watch tool, the probability of a no-rate cut in May increased to 98.40% from 95.90% a week ago.

Conference Board consumer confidence declines to 97 in Apr vs. an Estimate of 104.

Economic data for the day

May 1st, 2024, ADP employment change (12:15 pm GMT)

US ISM manufacturing PMI (1:45 pm GMT)

Federal funds rate (6:00 pm GMT)

 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 $2280, a break below the targets of $2260/$2225/$2195. The yellow metal faces minor resistance around $2320 and a breach above will take it to the next level of $2350/$2375/$2400/$2420/$2450.

It is good to sell on rallies around $2300 with SL around $2325 for TP of $2200.