FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- Hour chart)

Tenken-Sen- $1930.48

Kijun-Sen- $1934.86

Gold trades flat despite Moody's downgrade. It hits a low of $1922.80 yesterday and is currently trading around  $1930.11.

Moody has downgraded the credit ratings of small and mid-sized banks and negative outlook for 11 lenders.

US dollar index-  Bullish. Minor support around 102/101. The near-term resistance is 103/104.

According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 86.50% from 82% a week ago.

 The US 10-year yield lost more than 5%  as Moody downgrades banks. The  US 10 and 2-year spread narrowed to -74 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- Bullish (negative for gold)

Technical:

The near–term support is around $1920, a break below targets of $1900/$1885. The yellow metal faces minor resistance around $1950 and a breach above will take it to the next level of $1955/$1970/$1985.

 It is good to sell on rallies around $1950 with SL around $1960 for TP of $1900.