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FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

 

Tenken-Sen- $1925.70

 

Kijun-Sen- $1924.87

 

Gold prices showed a minor pullback after a massive sell-off. The rate hike by major central banks like BOE, and SNB putting pressure on the yellow metal at higher levels. US Fed  Chairman Powell's hawkish comments in testimony also dragged gold prices down. It hits a high of $1937.45  and currently trading around $1928.55

 

Major economic data for the day

 

US Core durable goods order (12:30 pm GMT)

 

CB consumer confidence (2:00 pm GMT)

 

US New home sales (2:00 pm GMT)

 

 US dollar index- weak. Minor support around 101.80/101. 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 75.6% from 74.40% a week ago.

 

The US 10-year yield pared some of its gains ahead of the US durable goods orders. The US 10 and 2-year spread narrowed to  -95.6% from -103%.

 

 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 $1900, a break below targets of $1878/$1868.The yellow metal faces minor resistance around $1937, and a breach above will take it to the next level of $1942/$1950/$1955.

 

 It is good to sell on rallies around $1948-50 with SL around $1962 for TP of $1920/$1900.

 

 

 

 

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