Gold -
Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $2357
Kijun-Sen- $2341
Gold showed a nice pullback on board-based US dollar selling. It hit a high of $2367 at the time of writing and is currently trading around $2366.
US economic data
US ADP employment- Weak (positive for gold)
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased 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 - Bearish (positive for gold)
US10-year bond yield- Bearish (positive for gold)
Technical:
The near–term support is around $2340, a break below the target of $2320/$2300/$2260/$2250. The yellow metal faces minor resistance around $2370 and a breach above will take it to the next level of $2400$2425.
It is good to buy on dips around $2340 with an SL of around $2320 for a TP of $2400.
