FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- Hour chart)

Tenken-Sen- $1956.87

Kijun-Sen- $1961.75

Gold showed a massive sell-off on the strong US dollar and surging US bond yields. It hits a low of $1941.30 and is currently trading around  $1944.49.

According to the Institute of supply management, the US ISM manufacturing index improved to 46 in Jul, below expectations of 46.80.

Major economic data for the day

Aug 2nd, 2023,  US ADP employment data (12:15 pm GMT)

US dollar index-  Bullish. Minor support around 100.60/99.50. The near-term resistance is 102.50/103.

According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 82.50% from 78.70% a week ago.

 The US 10-year yield gained more than 2.5% despite weak US ISM manufacturing PMI. The  US 10 and 2-year spread narrowed to -87.10 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 (negative for gold)

Technical:

The near–term support is around $1940, a break below targets of $1930/$1920. The yellow metal faces minor resistance around $1955 and a breach above will take it to the next level of $1965/$1975/$1990.

 It is good to sell on rallies around $1955-57 with SL around $1970 for TP of $1900.