FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1851.16
Kijun-Sen- $1851.36
Gold continues to trade weak on the strong US dollar. The upbeat jobs data have increased the chance of a 50 bpbs rate hike in the Jul Fed meeting. The US 10-year yield holds above 3% on the surge in crude oil prices. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul increased to 13.8% from 2.3% a week ago. It hits a low of $1837 yesterday and is currently trading around $1842.14.
Factors to watch for gold price action-
Global stock market- Mixed (neutral for gold)
US dollar index –Bullish (negative for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1828, a breach below targets $1820/$1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1875, any breach above will take to the next level $1880/$1900/$1920.
It is good to sell on rallies around $1849-50 with SL around $1870 for TP of $1800/$1787.
