Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $2351.67
Kijun-Sen- $2341
Gold consolidated in a narrow range after a jump of over $100 from a minor bottom of $2277. It hit a low of $2332 yesterday and is currently trading around $2339.14.
Hawkish comments from most of the Fed members put pressure on yellow metal at higher levels.
According to the CME Fed watch tool, the probability of a no-rate cut in June increased to 96.5% from 91.3% a week ago.
US dollar index- Bearish. Minor support around 104.50/103.75. The near-term resistance is 106/107.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index - Bearish (positive for gold)
US10-year bond yield- Bearish (positive for gold)
Technical:
The near–term support is around $2330, a break below the targets of $2320/$2300. The yellow metal faces minor resistance around $2350 and a breach above will take it to the next level of $2375/$2400/$2420/$2450.
It is good to buy on dips around $2330-32 with SL around $2315 for TP of $2400.
