Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1970.25
Kijun-Sen- $1969.76
Gold prices pared most of their gains on the strong US dollar. US Fed meeting minutes show that Fed members are divided over more rate hikes. Fed officials also mentioned that further rate hikes will be data-dependent. It hits a low of $1955 yesterday and is currently trading around $1957.60.
Markets eye progress in US debt negotiations deals for further direction.
Major economic data for the day
May 25th 2023, US Prelim GDP Q/Q (12:30pm GMT)
US unemployment claims
Pending home sales (2 pm GMT)
US dollar index- Bullish. Minor support around 102.30/101.50. The near-term resistance is 104.20/105.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June increased to 29.5% from 28.40% a week ago.
The US 10-year yield continues to trade higher for the second consecutive week. The US 10 and 2-year spread narrowed to -65.7% from -108%.
Factors to watch for gold price action-
Global stock market- bullish (negative for gold)
US dollar index - Bullish (negative for gold)
US10-year bond yield- Bullish (Bearish Mixed for gold)
Technical:
The near–term support is around $1950, a break below targets of $1935/$1900.The yellow metal faces minor resistance around $1970, and a breach above will take it to the next level of $2000/$2020/$2040/$2070/$2100/$2150.
It is good to sell below $1950 with SL around $1960 for TP of $1935/$1930.
