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FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 Hour chart)

 

Tenken-Sen- $2319.92

 

Kijun-Sen- $2316.17

 

Gold gained after weak US retail sales data.It hit a high of $2333.20 yesterday and is currently trading around $2331.

 

US retail sales- Weak (bullish for Gold). Yesterday’s weaker US data has increased the chance of an early rate cut by the Fed this year.

 

Fed members - Hawkish comments (negative for gold)

 

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 61.70% from 46.80% 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 $2340 and a breach above will take it to the next level of $2350/$2375.

 

It is good to buy on dips around $2300-02 with an SL of around $2280 for a TP of $2372.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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