Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $2370
Kijun-Sen- $2351
Gold declined below $2300 after upbeat US jobs data. It hit a high of $2387 yesterday and is currently trading around $2373.
US economy added 272000 jobs in May, above the forecast of 182000. The unemployment rate ticked up to 4% from 3.9%. Average wages rose to 4.1% Yoy vs 3.9% YoY.
US Initial jobless claims - Bearish (positive for Gold)
US ISM maufacturing PMI- Bearish (positive for gold)
Markets eye US FOMC monetary policy on Wednesday for further movement. Any hawkish rate pause will drag the precious metal further down.
According to the CME Fed watch tool, the probability of a no-rate cut in June increased to 99.40% from 95.56% 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- Bearish (Positive for gold)
Technical:
The near–term support is around $2290, a break below the target of $2270/$2250. The yellow metal faces minor resistance around $2320 and a breach above will take it to the next level of $2340/$2350/$2375.
It is good to sell on rallies around $2315-18 with SL around $2340 for TP of $2252.
