FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1936.89

Kijun-Sen- $1943.57

Gold prices dropped further after Powell's testimony. Fed chairman testified before the US House Financial Services Committee. He reiterated that the central bank remains strongly committed to bringing inflation below the 2% level. The hawkish testimony by Powell has pushed the dollar higher. It hits a low of $1919  and is currently trading around $1933.36.

 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 decreased to 71.9% from 76.9% a day ago.

 The US 10-year yield pared some of its gains despite hawkish Fed Chairman Powell's speech. The US 10 and 2-year spread widened to -99% 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 $1925, a break below targets of $1900/$1880.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 $1950-51 with SL around $1965 for TP of $1900.