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.
