FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1924.97

Kijun-Sen- $1917.24

Gold prices pared some of their gains on hawkish FOMC meeting minutes. The minutes showed that all Fed officials agreed to rate pause at the June meeting and more rate hikes this year. It hits a low of $1914.78   and currently trading around $1919.54.

Major economic data for the Day

Jul 6th, 2023, US ADP employment (12:15 pm GMT)

  US ISM services PMI (2:00 pm GMT)

 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 88.70% from 81.80% a week ago.

 The US 10-year yield surged sharply after hawkish Fed meeting minutes. The US 10 and 2-year spread narrowed to -100% from -110%.

 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 $1890/$1878/$1868/$1850.The yellow metal faces minor resistance around $1936; a breach above will take it to the next level of $1942/$1950/$1955.

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