FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 hour chart)

Tenken-Sen- $1914.98

Kijun-Sen- $1911.28

Gold jumped sharply on easing US treasury yields. It hit a high of  $1926.10  and is currently trading around  $1925.49.

Major economic data for the day

 Aug 29th, 2023,  S&P/CS Composite-20 HPI y/y (1:00 pm GMT)

                                CB Consumer Confidence (2:00 pm GMT)

US dollar index-  Bullish. Minor support around 103/102. The near-term resistance is 105/106.

According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 78% from 86% a week ago.

 The US 10-year yield trades weak for the second consecutive day as markets expect a rate pause. The US 10 and 2-year spread widened to -80% 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 $1912-13 with SL around $1900 for TP of $1950/$1970.