FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1920.58

Kijun-Sen- $1912.03

Gold prices showed a minor pullback on short covering.  The yellow metal was poorly performed in the past two months on hawkish rate hikes by major central banks. It hits a high of $1930.76   and currently trading around $1928.90.

US ISM manufacturing PMI declined in June to 46, compared to a  forecast of 47.20 expected (Positive for gold).

 US dollar index- weak. Minor support around 101.80/101. The near-term resistance is 103.60/104.40.

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 87.40% from 76.90% a week ago.

 The US 10-year yield pared some of its gains on weak US ISM manufacturing PMI.  The US 10 and 2-year spread widened to -108.50% 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 $1890, a break below targets of $1878/$1868/$1850.The yellow metal faces minor resistance around $1930; a breach above will take it to the next level of $1936/$1942/$1950/$1955.

 It is good to sell on rallies around $1928-30 with SL around $1950 for TP of $1878.