FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hours chart)

Tenken-Sen- $1855.87

Kijun-Sen- $1851.07

Gold pared some of its gains after the hawkish Fed meeting minutes. It confirmed that the Central bank will hike rates by 50 bpbs rates at the June and July meetings. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Jul jumped to 88% from 76.5% a week ago.

US durable goods orders dropped to 0.30% compared to an estimate of 0.50% in Apr. Markets eye US initial jobless claims and Prelim GDP for further direction.

Factors to watch for gold price action-

Global stock market- bearish (positive for gold)

US dollar index –Bearish (positive for gold)

US10-year bond yield- Bearish (positive for gold)

Technical:

The near–term support is around $1840, a breach below targets $1830/$1820/$1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1870, any breach above will take to the next level $1880/$1900/$1920.

It is good to buy on dips around $1828-30 with SL around $1820 for TP of $1900/$1920.