Ichimoku Analysis (4- Hour chart)
Tenken-Sen- $1962.43
Kijun-Sen- $1962.43
Gold lost its shine after upbeat US GDDP data. It hits a low of $1942.67 yesterday and currently trading around $1954.91.
US GDP accelerated to a 2.4% annualized rate in Q2, compared to a forecast of 1.8%. European central bank hiked its rates by bpbs to 4.25% as expected. The central has kept its door open for further tightening to tackle inflation.
Jul 28th, 2023, Core PCE index (12:30 pm GMT)
Revised UoM consumer sentiment (2:00 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 no-rate hike in Sep increased to 79% from 0% a day ago.
The US 10-year yield surged more than 5% on upbeat US GDP data. The US 10 and 2-year spread narrowed to -89.50% 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 $1940, a break below targets of $1930/$1920. The yellow metal faces minor resistance around $1960, and a breach above will take it to the next level of $1980
$2000/$2020.
It is good to sell on rallies around $1970-72 with SL around $1985 for TP of $1900.
