Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $2308
Kijun-Sen- $2337
Gold showed a minor pullback ahead of US CPI and Fed policy.It hit a high of $2319 yesterday and is currently trading around $2314.70.
Marlets expects a weak headline CPI at 0.10% m/m from 0.30% previous month. Core CPI is expected to rise by 0.30% m/m from 0% in Apr. Any hawkish rate pause will drag the precious metal further down.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased to 48.30% from 57.20% a week ago.
US dollar index- Bullish. Minor support around 104/103. The near-term resistance is 106/107.
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 $2280, a break below the target of $2270/$2250/$2228. 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.
