Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $2336
Kijun-Sen- $2379
Gold was one of the worst performers last week, on a strong US dollar.w It hit a low of $2325 yesterday and is currently trading around $23338.70.
The minutes for FOMC monetary policy were hawkish as many policymakers wanted to keep rates on hold for a longer period till inflation cools down below 2%.
The US S&P Global Composite flash manufacturing PMI and services PMI exceeded market expectations.
US new home sales and existing home sales came below forecast. fell 4.7% to an annual rate of 634000 in Apr, below the revised rate of 665000.
According to the CME Fed watch tool, the probability of a no-rate cut in June decreased to 99.10% from 91.1% a week ago.
US dollar index- Bearish. Minor support around 104/103. The near-term resistance is 105/106.50.
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- Bullish (negative for gold)
Technical:
The near–term support is around $2325, a break below the targets of $2300/$2285/$2270. The yellow metal faces minor resistance around $2350 and a breach above will take it to the next level of $2375/ $2400/$2420/$2450.
It is good to buy on dips around $2300 with SL around $2270 for TP of $2500.


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