Ichimoku Analysis (4- Hour chart)
Tenken-Sen- $1959.18
Kijun-Sen- $1969.77
Gold prices trade flat ahead of US Fed monetary policy. It hits a high of $1965.70 yesterday and currently trading around $1964.32.
US Fed plans to hike rates by 25 bpbs and markets eye Powell's guidance for further direction.
US CB consumer confidence rose to 117 in July, compared to a forecast of 112.
Jul 26th, 2023, FOMC statement (6:00 pm GMT)
US dollar index- Bullish. Minor support around 100.60/99.50. 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 98.90% from 98% a week ago.
The US 10-year yield trades flat ahead of US-fed monetary policy. The US 10 and 2-year spread narrowed to -99.20% from -110%.
Factors to watch for gold price action-
Global stock market- bullish (negative for gold)
US dollar index - Bullish (bearish for gold)
US10-year bond yield- Bearish (positive for gold)
Technical:
The near–term support is around $1950, a break below targets of $1945/1930. The yellow metal faces minor resistance around $1965, and a breach above will take it to the next level of $1980/$2000.
It is good to buy on dips around $1950 with SL around $1938 for TP of $1990/$2000.
