Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $2318.39
Kijun-Sen- $2318.70
Gold trades are weak despite weak US inflation data. It hit a high of $2336 and is currently trading around $2318.40.
Economic data
US CPI- Weak (bullish for gold)
US PPI - weak (positive for gold)
US jobless claims - negative (bearish for gold)
The yellow metal pared most of its after the hawkish Fed rate pause. In the new dot plot, the central bank has reduced the rate cut from three to one this year. The easing of inflation supports the precious metal at lower levels.
Major central banks monetary policy this week-
June 20th, 2024- SNB Monetary policy ( 7:30 am GMT)
BOE Monetary policy (11 am GMT)
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 61.10% from 46.60% a week ago.
US dollar index- Bullish. Minor support around 104/103. The near-term resistance is 105.50/107.
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 $2328-30 with SL around $2340 for TP of $2252.
