FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1991.60

Kijun-Sen- $1991.78

Gold prices showed a minor weakness on US debt worries.  US Treasury Secretary Yellen said that the US could run short of money after June 1st, 2023 if no deal is reached. The yellow metal lost more than $25 after hitting a high of $2006 yesterday. It is currently trading at around $1982.08.

 US ISM manufacturing PMI came at 47.10in Apr compared to a forecast of 46.60.

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

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in May increased to 95.40% from 83.9% a day ago.

 The US 10-year yield showed a minor pullback after US ISM manufacturing PMI. The US 10 and 2-year spread narrowed to -57.70% 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, a breach above will take it to the next level of $2050/$2070.

  It is good to buy on dips around $1950-52 with SL around $1935 for TP of $2040/$2070.