FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $1929.94

Kijun-Sen- $1920.93

Gold prices hit a multi-week high ahead of US inflation data. US CPI is expected to have increased by 0.30% mom in June after a 0.10% jump in May. The yearly CPI is foreseen at 3.1% compared to 4% the previous month. It hits an intraday high of $1941.02 and currently trading around $1938.53.

 US dollar index- weak. Minor support around 100.78/100. The near-term resistance is 102/103.

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 92.4% from 86.80% a week ago.

 The US 10-year yield declined more than 3% ahead of the US CPI.  The  US 10 and 2-year spread narrowed to -90% from -110%.

 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 $1900, a break below targets of $1890/$1878/$1868/$1850.The yellow metal faces minor resistance around $1942, and a breach above will take it to the next level of $1950/$1955/$1970.

 It is good to buy on dips around $1932-33 with SL around $1920 for TP of $1970.