FxWirePro- Gold Daily Outlook

Gold -

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $2334

Kijun-Sen- $2323

Gold showed a minor pullback after the SNB monetary policy. It hit a high of $2345.74 at the time of writing and is currently trading around $2341.

The Swiss National Bank (SNB) cuts the deposit rates by 25 bpbs points for a second consecutive time from 1.50% to 1.25%. Market eyes Bank Of England monetary policy.

Major central banks like the ECB and BOE cut rates by 25 bpbs the previous month with a dovish tone supporting the precious metal at lower levels.

US economic data for the day

Philly Fed manufacturing Index and Building permits (12:30 pm GMT)

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased to 57.90% from 59.6% 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 $2320, a break below the target of $2300/$2280/$2260. The yellow metal faces minor resistance around $2350 and a breach above will take it to the next level of $2375/$2400.

It is good to buy on dips around $2305-06 with an SL of around $2280 for a TP of $2372.