FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $2001.36

Kijun-Sen- $2004.09

Gold prices trading flat as most markets closed yesterday on account of Easter Monday. The yellow metal showed a minor sell-off as the US unemployment rate came better than expected.  It hits a low of $1981.79 and is currently trading around $1990.70.

US dollar index-Bearish. Minor support around 101.40/101. The near-term resistance is 102.80/103.45/104.20.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in May increased to 70.5% from 57.2% a week ago.

 The US 10-year yield showed a minor pullback ahead of the FOMC meeting minutes. The US 10 and 2-year spread narrowed to -57.3% 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 $1977, a break below targets of $1969/$1955/$1936.The yellow metal faces minor resistance around $2000, and a breach above will take it to the next level of $2020/$2035.

  It is good to buy on dips around $1975 with SL around $1955 for TP of $2040/$2070.