Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1971.30
Kijun-Sen- $1968.86
Gold prices are down more than $30 as risk appetite improves. The easing of the banking crisis puts pressure on the yellow metal at higher levels. It hits a low of $1944 yesterday and is currently trading around 1959.60.
Major economic data for the day
Mar 28th, 2023 US CB Consumer confidence m/m and Richmond manufacturing Index(3 pm GMT)
US dollar index-Bearish. Minor support around 102.50/101.80. The near-term resistance is 103.40/104.20.
According to the CME Fed watch tool, the probability of a no-rate hike in Mar decreased to 58.3% from 83.2% a day ago.
The US 10-year yield formed double bottom around 3.28% and showed a minor pullback. The US 10 and 2-year spread narrowed to -40.7% from -108%.
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- bullish (negative for gold)
Technical:
The near–term support is around $1955, a break below targets of $1944/$1935/$1921/$1890.The yellow metal faces minor resistance around $1966, and a breach above will take it to the next level of $1980/$2010/$2020.
It is good to sell on rallies around $2000 with SL around $2015 for TP of $1935.
