FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4- hour Chart)
Gold price trades flat ahead of US CPI data. The yellow metal is supported by a weak US dollar and slight safe-haven demand due to geo-political tension between China and Taiwan. Economists predict slight easing in US CPI to 8.7% YOY from 9.1%.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 68.50% from 41% a week ago.
Factors to watch for gold price action-
Global stock market- Mixed (neutral for gold)
US dollar index – Bearish (positive for gold)
US10-year bond yield- Bearish (positive for gold)
The near–term support is around $1780, a breach below targets $1760/$1750/$1740. Significant reversal only below $1650. The yellow metal faces minor resistance around $1800, breach above will take it to the next level of $1820/$1840.
It is good to buy on dips for around $1770 with SL at around $1750 for TP of $1825.
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