FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- Hour chart)

Tenken-Sen- $1904.82

Kijun-Sen- $1902.75

Gold surged sharply more than $15 on weak US economic data. It hit a high of $1920  yesterday and is currently trading around  $1918.57. Markets eye Fed chairman speech in Jackson Hole symposium for further direction.

S&P manufacturing PMI declined to 47in August, compared to a forecast of 48.90. The services PMI showed a minor drop to 51 vs. estimate of 52.10.

Major economic data for the day

 Aug 24th, 2023, US Core durable goods order and unemployment claims (12:30 pm GMT)  

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 86.5% from 88% a week ago.

 The US 10-year yield falls more than 4% on dismal US flash PMI data. The  US 10 and 2-year spread widened to -78% 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/$1970.

 It is good to buy on dips around $1905-06 with SL around $1890 for TP of $1950/$1970.