FxWirePro- Gold Daily Outlook

Gold -

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $2328.44

Kijun-Sen- $2309

Gold pared some of its gains after the strong US inflation. The yellow metal hit a high of  $2319 yesterday and is currently trading around $2336.84.

The annual CPI  rose 3.5%  in Mar (the biggest gain since Sep 2023), compared to an estimate of 3.4%. Core CPI surged 0.40% in March vs. the Estimate of 0.30%.  Fed minutes show that the central bank needs more evidence that inflation is cooling.

According to the CME Fed watch tool, the probability of a no-rate cut in  June increased to 81.40% from  37.70% a week ago.

 US dollar index-  Bullish. Minor support around 103.80/103. The near-term resistance is 105.20/106.

 Factors to watch for gold price action-

   Global stock market- Bullish  (negative for gold)

  US dollar index - Bearish (Bullish  for gold)

  US10-year bond yield- Bullish (negative for gold)

Technical:

The near–term support is around $2330, a break below targets of $2318/$2300/$2280/$2267/$2250/$2228. The yellow metal faces minor resistance around $2365 and a breach above will take it to the next level of $2400/$2420.

It is good to buy on dips around $2320 with SL around $2300 for TP of $2400.