Ichimoku Analysis (4-hour chart)
Tenken-Sen- $2000
Kijun-Sen- $1987
Gold prices jumped sharply and holds above $2000 on board-based US dollar selling. US dollar index hits two-month low on weak US ISM manufacturing PMI. It hits a high of $2025 and is currently trading around $202.33.
Market eyes US ISM services and ADP employment data for further direction.
US dollar index-Bearish. Minor support around 101.50/100. The near-term resistance is 102.80/103.40/104.20.
According to the CME Fed watch tool, the probability of a no-rate hike in May increased to 57.9% from 52.8% a week ago.
The US 10-year yield lost more than 7% on increasing rate cut hopes. The US 10 and 2-year spread widened to -59% from -51.10%.
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 (negative for gold)
Technical:
The near–term support is around $2006, a break below targets of $1994/$1975/$1955.The yellow metal faces minor resistance around $2000, and a breach above will take it to the next level of $2020/$2038.
It is good to buy on dips around $2000 with SL around $1978 for TP of $2070.
