FxWirePro- Gold Daily Outlook

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.