FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1945.38

Kijun-Sen- $1961.09

Gold prices hit a fresh 8-week low on upbeat market sentiment. US President and House Speaker Kevin McCarthy have reached a deal for a debt ceiling deal to avert a debt default. It hit a low of $1936.85 yesterday and is currently trading around $1945.55.

Major economic data for the day

May 30th, 2023, US CB Consumer Confidence (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  60.10% from 25.70% a week ago.

 The US 10-year yield pared some of its gains due to profit booking. The US 10 and 2-year spread narrowed to -81.20% 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 for gold)

Technical:

The near–term support is around $1935, a break below targets of $1920/$1900.The yellow metal faces minor resistance around $1955, and a breach above will take it to the next level of $1970/$2000/$2020/$2040/$2070/$2100/$2150.

 It is good to sell on rallies around $1955  with SL around $1970 for TP of $1920/$1900.