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FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

 

Tenken-Sen- $1920.88

 

Kijun-Sen- $1923.92

 

Gold prices pared some of their gains on upbeat US economic data.  US durable goods orders surged 1.7% m/m, above the forecast of -1%. US Conference Board consumer confidence rose to 109.70 in June from 102.50 in May. Sales of new US single-family homes increased to 763000 in May, the highest level in 1-1/2 years. It hits a low of $1911  and currently trading around $1915.58.

 

Major economic data for the day

 

US Fed Powell speech (1:30 pm GMT)

 

ECB Lagarde Speaks (3:00 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 76.9% from 74.40% a day ago.

 

 The US 10-year yield showed a minor pullback after upbeat US data. The US 10 and 2-year spread widened to -98.7% from -94.8%.

 

 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 $1940-41-with SL around $1952 for TP of $1900.

 

 

 

 

 

 

 

 

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