FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4- hour Chart)
Gold price regained after a minor decline to $1783 on weak US PPI data. It fell by 0.5% in July for the first time since the COVID pandemic compared to a forecast of 0.2%. US dollar index halted its weak trend and showed a pullback above 105 despite the PPI miss. Markets eye geopolitical tension between China and Taiwan for further direction.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep dropped to 37.5% from 42% a day ago.
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)
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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