Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $2300
Kijun-Sen- $2337
Gold trades weak on USD strength. It hit a low of $2387 yesterday and is currently trading around $2302.
The yellow metal showed a minor sell-off after China central bank paused gold purchase.
Markets await US CPI and Fed monetary policy for further direection. The precious metal showed a minor pullback after ECB and BOC rate cut.
According to the CME Fed watch tool, the probability of a no-rate cut in June decreased to 99.4% 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- 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.
