FxWirePro- Gold Daily Outlook

Gold -

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $2328.23

Kijun-Sen- $2318

Gold showed a minor pullback, ahead of the FOMC minutes meeting. It hit a high of $2344 at the time of writing and is currently trading around $2343.

Fed Chairman Powell said in the ECB forum “We've made quite a bit of progress in bringing inflation back down to our target, while the labor market has remained strong and growth has continued,”

Major US economic data -

12:30 pm US ADP employment data, US jobless claims

2 pm US ISM services PMI

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 59.90% from 56.30% a week ago.

 US dollar index- Bullish. Minor support around 105.50/104. The near-term resistance is 106.20/107.

 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- Bullish (Negative  for gold)

Technical:

The near–term support is around $2280, a break below the target of $2260/$2250. The yellow metal faces minor resistance around $2340 and a breach above will take it to the next level of $2360/$2375/$2400.

It is good to buy on dips around  $2308-10 with an SL of around $2290 for a TP of $2360.