FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour  chart)

Tenken-Sen- $2014.49

Kijun-Sen- $2040.52

Gold prices trade higher above $2025 on US default fears. US Treasury Secretary Janet Yellen warned that a "constitutional crisis" would happen if the debt ceiling was not increased. It hits a high of $2029.40 and is currently trading around $2025.24.

 US dollar index- Bearish. Minor support around 100.80/100. The near-term resistance is 101.60/102.40.

 According to the CME Fed watch tool, the probability of a no-rate hike in June increased to 86.90% from 64.6% a week ago.

 The US 10-year yield gained more than 6% from the minor bottom of 3.298%. The US 10 and 2-year spread narrowed to -48% 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 $1970/$1955/$1935.The yellow metal faces minor resistance around $2070, and a breach above will take it to the next level of $2100/$2150.

 It is good to buy on dips around $1970 with SL around $1950 for TP of $2070/$2100.