FxWirePro- Gold Daily Outlook

Gold -

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $2332.85

Kijun-Sen- $2325.39

Gold gained sharply after weak US jobs data. It hit a high of $2370.40 at the time of writing and is currently trading around $2366.

US initial jobless claims rose 22000 to 231k in the week ending May 4th, compared to a forecast of 210k. The weak US jobs renewed the chance of a rate cut by the Fed in June.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 50.3% from 48.90% a day ago.

 US dollar index- Bullish. Minor support around 104.50/103.75. The near-term resistance is 106/107.

   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 $2345, a break below the targets of $2320/$2300. The yellow metal faces minor resistance around $2375 and a breach above will take it to the next level of $2400/$2420/$2450.

It is good to buy on dips around $2330-32 with SL around $2315 for a TP of $2400.