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FxWirePro- Gold Daily Outlook

Gold -

 

Ichimoku Analysis (4 Hour chart)

 

Tenken-Sen- $2408

 

Kijun-Sen- $2387

 

Gold holds above $2400 on board based on the US dollar weakness. It hit a high of $2424 yesterday and is currently trading around $2405.

 

US economic data -

 

US CPI- negative (positive for Gold)

 

US PPI - Positive (bearish for Gold)

 

Market eyes US retail sales, and Empire State manufacturing index for further direction.  Major central bank monetary policy - ECB

 

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 88.10% from 72.2% a week ago.

 

 US dollar index- Bullish. Minor support around 104/103. The near-term resistance is 105/106.20.

 

 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 $2385, a break below the target of $2366/$2350. The yellow metal faces minor resistance around $2425 and a breach above will take it to the next level of $2448/$2500

 

It is good to buy on dips around  $2378-80 with an SL of around $2360 for a TP of $2450.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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