FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1726.32

Kijun-Sen- $1729.83

Gold price lost more than $25 after US CPI data. US CPI hits a 40-year high at 9.1% on a yearly basis in June compared to market expectations of 8.8%. US dollar index gained strength on recession woes. It holds well above the 108 level, any breach above 108.56 confirms further bullish continuation. According to the CME Fed watch tool, the probability of a 100 bpbs rate hike in Jul rose to 82.1% from 7.6% a week ago.

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 $1700, a breach below targets $1650/$1600—significant reversal only below $1600. The yellow metal faces minor resistance around $1760, any breach above will take it to the next level of $1780/$1800.

It is good to sell on rallies around $1750-52 with SL around $1770 for TP of $1700.