FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- Hour chart)

Tenken-Sen- $1894.92

Kijun-Sen- $1894.70

Gold holds above $1900 despite mixed US economic data. It hit a high of $1904.51  yesterday and is currently trading around  $1901.29.

US existing home sales declined by 2.2% in Jul to a seasonally adjusted annual rate of 4.07 million. August US Richmond manufacturing index came at -7  vs expected -10.

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 decreased to 85% from 90% a week ago.

 The US 10-year yield trades flat ahead of the Jackson Hole symposium. The  US 10 and 2-year spread widened to -73% from -66%.

 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.