FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 hour chart)

Tenken-Sen- $1979.84

Kijun-Sen- $1947.40

Gold prices hit a 12-month high on safe-haven demand. The yellow metal pared some of its gains on uncertainty. Markets eye the banking crisis and Fed monetary policy for further direction. Hawkish Fed and a rebound in US yields also put pressure on gold at a higher level.  Gold hit a low of $1965.95 and is currently trading around $1981.75.

Major economic data for the day

Mar 21st, 2023 US Existing Home Sales (2:00 PM GMT)

US dollar index-Bearish. Minor support around 103.20/102.50. The near-term resistance is 104/105.10.

 According to the CME Fed watch tool, the probability of a  25 bpbs rate hike in Mar increased to 73.8% from 65% a week ago.

 The US 10-year yield showed a minor pullback ahead of the US Fed meeting. The US 10 and 2-year spread narrowed to 48% from -107%.

  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 $1965, a break below targets of $1955/$1940.The yellow metal faces minor resistance around $2000 and a breach above will take it to the next level of $2010/$2022/$2037.

  It is good to buy on dips around $1965 with SL around $1955 for TP of $2000/$2022.