FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1999

Kijun-Sen- $1996.79

Gold prices showed a huge rally after the collapse of First Republic Bank. JP Morgan acquired $173 billion in loans,$30 billion of securities, and $92 billion in deposits. It hits a three-week high of $2019.43 and is currently trading at around $2018.54.

Markets eye  US ADP employment change and ISM services PMI for further direction.

US dollar index- Neutral. Minor support around 101/100. The near-term resistance is 102.40/103.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in May decreased to 86.7%  from 93.20% a day ago.

 The US 10-year yield declined more than 5% due to banking turmoil. The US 10 and 2-year spread narrowed to -54.30% 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 $2000, a break below targets of $1980/$1970/$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 $1990 with SL around $1970 for TP of $2040/$2070.