Ichimoku Analysis (4-hour chart)
Tenken-Sen- $2012
Kijun-Sen- $1990
Gold prices showed a minor sell-off due to profit booking. Markets eagerly await the US Non-farm payroll for further direction. It hits a low of $2008 and is currently trading around $2014.
US private sector has added 145000 jobs in Mar, compared to a forecast of 208000. US ISM services slowed to 51.20 in Mar, below the estimate of 54.30.
US dollar index-Bearish. Minor support around 101.40/101. The near-term resistance is 102.30/102.80/103.35.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in May increased to 44.8% from 44.2% a day ago.
The US 10-year yield falls to 3.26%, lowest level since Sep 12 2022 due to weak US economic data. The US 10 and 2-year spread narrowed to -56% from -108%.
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 $2000, a break below targets of $1978/$1955/$1944/$1935/$1921/$1890.The yellow metal faces minor resistance around $2035, and a breach above will take it to the next level of $2070/$2100.
It is good to buy on dips around $1975 with SL around $1955 for TP of $2040/$2070.
