Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $2026.05
Kijun-Sen- $2029.53
Gold prices lost their shine despite weak US PPI data. The US Producer price index came in at 0.20% in Apr compared to a forecast of 0.30%. Core PPI excluding food and energy costs up 0.20% month-on-month. It hits a low of $2008 and is currently trading around $2011.44.
The number of people who have filed for unemployment befits rose by 22000 to 264000 last week, the highest level in 2-1/2 weeks.
US dollar index- Bearish. Minor support around 100.80/100. The near-term resistance is 102.40/103.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June increased to 12.9% from 0.0% a week ago.
The US 10-year yield traded weak for the third consecutive days. The US 10 and 2-year spread narrowed to -51% from -108%.
Major economic data for the day
May 12th, 2023, Prelim UoM Consumer Sentiment (2 pm GMT)
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.
