FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- Hour chart)
 
Tenken-Sen- $1911.78
 
Kijun-Sen- $1917.58
 
Gold continues to decline for a third consecutive week on a strong US dollar. It hit a low of $1902.77  yesterday and is currently trading around  $1906.63.

Last week, US annual CPI rose slightly below forecast. But US PPI edged higher above estimate. The slight increase in inflation increased the chance of a Fed rate hike.

Major economic data for the day 

Aug 15th, 2023,  US Core retail sales m/m (12:30 pm GMT)

   Canada CPI m/m (12:30 pm GMT)
 
                    
US dollar index-  Bullish. Minor support around 102/101. The near-term resistance is 103.50/105.
 

According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 88.5% from 85% a week ago.
 
 The US 10-year yield hits multi-week in hopes of a further rate hike by Fed. The  US 10 and 2-year spread narrowed to -76% 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 $1900, a break below targets of $1885/$1867. 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 buy on dips around $1900 with SL around $1890 for TP of $1950