FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- Hour chart)

Tenken-Sen- $1944.01

Kijun-Sen- $1952.80

Gold traded weak for the second consecutive day on a strong US dollar  It has gained momentum despite Fitch downgrading US. It has lowered the credit rating of the United States from AAA+ to AA+. It hits a low of $1933.30 and is currently trading around  $1937.69.

US private sector employment increased by 324000 in Jul, compared to a forecast of 185000.

Major economic data for the day

Aug 3rd, 2023,  BOE monetary policy  (11 am GMT)

                             Unemployment claims  (12 am GMT)

                             US ISM services PMI (2 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 sharply after upbeat US private sector jobs. The  US 10 and 2-year spread narrowed to -78.10 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 $1930, a break below targets of $1920/$1900. The yellow metal faces minor resistance around $1940 and a breach above will take it to the next level of $1955/$1970/$1985.

 It is good to sell on rallies around $1940 with SL around $1950 for TP of $1900.