FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1955.67

Kijun-Sen- $1946.51

Gold prices trade flat after a minor pullback to $1968. The minor pullback in US treasury yields is putting pressure on the yellow metal at higher levels. It hits a high of $1967.95  and is currently trading around $1950.

Major central banks have hiked rates by 25 bpbs the previous week with a hawkish outlook dragging the gold price down. Markets have been pricing another 25 bpbs rate hike by Fed in the next month.

 US dollar index- weak. Minor support around 102/101. The near-term resistance is 103/103.85.

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 74.40% from 59.90% a week ago.

 The US 10-year yield consolidating in a narrow range for the past four days. The US 10 and 2-year spread widened to -94% from -35%.

 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- Bullish (Bearish for gold)

Technical:

The near–term support is around $1935, a break below targets of $1925/$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 $1960-61 with SL around $1975 for TP of $1920/$1900.