Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $2347.88
Kijun-Sen- $2344.80
Gold pared most of its gains on strong US treasury yields. It hit a low of $2328 at the time of writing and is currently trading around $2334.50.
Fed Beige Book shows that most regions showed a modest or slight growth. Retail spending remains flat, reflecting consumers' price sensitivity.
According to the CME Fed watch tool, the probability of a no-rate cut in June decreased to 98.20% from 98.50% a week ago.
US dollar index- Bearish. Minor support around 104/103. The near-term resistance is 105/106.50.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index - Bullish (negative for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $2325, a break below the targets of $2300/$2285/$2270. The yellow metal faces minor resistance around $2365 and a breach above will take it to the next level of $2375/ $2400/$2420/$2450.
It is good to buy on dips around $2300 with SL around $2270 for TP of $2500.
