FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour  chart)

Tenken-Sen- $2032.84

Kijun-Sen- $2040.52

Gold prices gained sharply after weak US inflation data.  US CPI declined to 4.9% YoY compared to a forecast of 5%. On a monthly basis, CPI and Core CPI rose 0.40% in line with estimates. It hits a high of $2048.23 and is currently trading around $2031.51.

 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 91.50% from 77.10% a week ago.

 The US 10-year yield pared some of its gains after US CPI. The US 10 and 2-year spread narrowed to -49.50% from -108%.

Major economic data for the day

May  11th, 2023  BOE Monetary policy (11 am GMT)   

                                US PPI   (12:30 pm GMT)

                               Unemployment benefits (12:30 pm)

  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 $2020, a break below targets of $2000/$1970/$1955/$1935.The yellow metal faces minor resistance around $2040, and a breach above will take it to the next level of $2070/$2100/$2150.

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