Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $1958.08
Kijun-Sen- $1938.20
Gold prices hold above the $1960 level despite weak US PPI. The Producer prices for the month dropped to 0.10% YoY, compared to a forecast of 0.40%. Core PPI m/m declined to 0.10% vs the forecast of 0.20%. It hits a high of $1963.42 and currently trading around $1960.69.
Major economic data for the day
Jul 14th, 2023, Prelim UoM consumer sentiment (12:30 pm GMT)
US dollar index- weak. Minor support around 99.50/98. The near-term resistance is 101/102.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 92.4% from 91.80% a week ago.
The US 10-year yield continues to trade weak after US inflation data. The US 10 and 2-year spread narrowed to -87% 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- Bearish (positive for gold)
Technical:
The near–term support is around $1953, a break below targets of $1945/1930. The yellow metal faces minor resistance around $1970, and a breach above will take it to the next level of $1980/$2000.
It is good to buy on dips around $1955 with SL around $1945 for TP of $1990/$2000.
