FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1955.15

Kijun-Sen- $1954.35

Gold prices trading in a narrow range between $1938.40 and $1970.25 for the past four days. The minor sell-off in the US dollar and US treasury yield supports the yellow metal at a lower level. It hits a low of $1970.50 yesterday and is currently trading around $1963.28.

 US dollar index- Neutral. Minor support around 103.20/102.80. The near-term resistance is 103.85/104.40.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June decreased to  25.2% from 27.5% a day ago.

 The US 10-year yield pared some of its gains on profit booking. The US 10 and 2-year spread widened to -71.10% from -79%.

 Factors to watch for gold price action-

   Global stock market- bullish (negative for gold)

  US dollar index - Mixed  (neutral 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 $1965, and a breach above will take it to the next level of $1980/$2000/$2020/$2040/$2070/$2100/$2150.

 It is good to sell on rallies around $1970 with SL around $1980 for TP of $1920/$1900.