FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- Hour chart)

Tenken-Sen- $1936.32

Kijun-Sen- $1943.11

Gold showed a minor pullback after hitting a multi week low. It hits a low of $1898.80  yesterday and is currently trading around  $1895.70.

S&P has downgraded the ratings of Associated Banc -corp and Valley Ban corp on funding risks and higher reliance on brokered deposits.

US dollar index-  Bullish. Minor support around 103/102. The near-term resistance is 103.50/105.

According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 84.50% from 90% a week ago.

 The US 10-year yield surged sharply and hit its highest level since 2007 on rate hike fears. The  US 10 and 2-year spread narrowed to -66% 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 $1885, a break below targets of $1847/$1820. The yellow metal faces minor resistance around $1920 and a breach above will take it to the next level of $942/$1950.

 It is good to buy on dips around $1890 with SL around $1870 for TP of $1950.