FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 hour chart)

Tenken-Sen- $1960.35

Kijun-Sen- $1958.69

Gold prices pared most of their gains ahead of US Fed monetary policy. Markets already pricing in a 25 bpbs rate hike. Any hawkish comments from Fed Chairman will drag the yellow metal further lower. Major central bank decisions such as Fed, SNB, and BOE will be in the spotlight.  Gold hit a low of $1935.48 and is currently trading around $1938.90.

US existing home sales surged 14.5% in Feb to a seasonally adjusted annual rate of 4.58 million, the largest monthly increase since Jul 2020.

Major economic data for the day

Mar 22nd, 2023  US FOMC statement (6:00 pm GMT)

 Mar 23rd, 2023 SNB monetary policy Assessment

US dollar index-Bearish. Minor support around 103/102.50. 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 89.3% from 54% 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 widened to 57% from -33%.

  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- Bearish (positive for gold)

Technical:

  The near–term support is around $1935, a break below targets of $1921/$1890.The yellow metal faces minor resistance around $1955 and a breach above will take it to the next level of $1963/$1972.

  It is good to sell on rallies around $1955 with SL around $1965 for TP of $1900.