Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1958.75
Kijun-Sen- $1956.45
Gold prices lost their shine after US inflation data. US core CPI rose 4% in May from 4.9% in Apr, the lowest level since Mar 2021 in Apr. US May inflation rate at 0.10% (MoM) Vs Est 0.30%. It hits a low of $1940 and is currently trading around $1949.04.
US dollar index- Neutral. Minor support around 103/102.70. The near-term resistance is 103.85/104.40.
Major economic data for the week
Jun 13th, Federal funds rate (12:30 PM)
According to the CME Fed watch tool, the probability of a no-rate hike in June increased to 89.60% from 78.20% a week ago.
The US 10-year yield surged sharply despite weak US CPI. The US 10 and 2-year spread widened to -84% from -35%.
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 $1960 with SL around $1972 for TP of $1920/$1900.
