FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $2336

Kijun-Sen- $2379

Gold showed a weakness after a minor pullback. It hit a low of $2341 at the time of writing and is currently trading around $2343.

The CFTC’s Commitment of Traders (COT) showed that speculative long positions in COMEX gold futures increased by 12% to their highest level in four years.

According to the CME Fed watch tool, the probability of a no-rate cut in June decreased to 99.10% from 96.50% 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.