FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1852.30

Kijun-Sen- $1849.15

Gold price remained above $1850 on a slight weakness in the US dollar. Markets eye the European central bank monetary policy for further direction. Euro gained strength as markets anticipate hawkish ECB policy.  According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul increased to 16.2% from 13 % a day ago. It hits an intraday low of $1851 yesterday and is currently trading around $1854.61.

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.