FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4-Hour chart)
Gold price lost its shine as risk appetite picked up. The global stock market rally and a minor pullback in US treasury yield also put pressure on the yellow metal.G7 countries planning to impose sanctions on Russia is positive news for the precious metal. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul rose to 92.7% from 88.7% a week ago. It hits a low of $1816 the previous week and is currently trading around $1835.50.
The US durable goods orders rose for a second consecutive month by 0.7% in May above the estimate of 0%. The US pending home sales rose unexpectedly by 0.7% last month vs. a forecast of -3.5%.
Markets eye CB Consumer confidence and Richmond Manufacturing index for further direction.
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- Bullish (negative for gold)
The near–term support is around $1815, a breach below targets $1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces minor resistance around $1850, any breach above will take to the next level $1875/$1900/$1920.
It is good to sell on rallies around $1838-40 with SL around $1875 for TP of $1800/$1787.