FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $2305.05

Kijun-Sen- $2317.18

Gold showed a minor pullback as the Fed was less hawkish than expected. It hit a high of $2328 yesterday and is currently trading around $2310.

The central bank has kept rates unchanged within their current range of 5.25%-5.50%. The US Central Bank added  that it does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward two percent.'' This indicates that rate cuts are not cards anytime soon.

According to the CME Fed watch tool, the probability of a no-rate cut in May increased to 98.40% from 95.90% a week ago.

US ISM manufacturing index declined to 49.20 in  Apr vs. Estimate of 50.

Economic data for the day

 US dollar index- Bullish. Minor support around 105/104. The near-term resistance is 106.50/107.40.

   Factors to watch for gold price action-

   Global stock market- Bearish (positive for gold)

  US dollar index - Bullish (negative for gold)

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

Technical:

The near–term support is around $2280, a break below the targets of $2260/$2225/$2195. The yellow metal faces minor resistance around $2320 and a breach above will take it to the next level of $2350/$2375/$2400/$2420/$2450.

It is good to sell on rallies around $2310-12 with SL around $2330 for TP of $2200.