FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1986.38

Kijun-Sen- $1990.86

Gold prices recovered more than $25 after forming a double bottom near $1970. It hits a high of $2001.04 and is currently trading around $1995.48.

US dollar index- Neutral. Minor support around 101/100. The near-term resistance is 102.35/103.

Major economic data

Apr 25th, 2023 US CB consumer confidence (2 pm GMT).

  US New Home Sales

  Richmond Manufacturing Index

According to the CME Fed watch tool, the probability of a no-rate hike in May increased to 15.70% from 10.90% a week ago.

 The US 10-year yield trades are weak for the second consecutive day on weak inflation and subdued economic data. The US 10 and 2-year spread narrowed to -60.7% 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 (positive for gold)

Technical:

The near–term support is around $1970, a break below targets of $1955/$1935.The yellow metal faces minor resistance around $2020, and a breach above will take it to the next level of $2050/$2070.

  It is good to buy on dips around $1980 with SL around $1960 for TP of $2040/$2070.