FxWirePro- Gold Daily Outlook

Gold -

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $2360.51

Kijun-Sen- $2371

Gold edged lower after Powell's speech. It hit a low of $2349 yesterday and is currently trading around $2372.

Powell said,  “Over the past two years, the economy has made considerable progress toward the Federal Reserve's 2 percent inflation goal, and labor market conditions have cooled while remaining strong. Reflecting these developments, the risks to achieving our employment and inflation goals are becoming better balanced.”

Market eyes the US CPI for further direction.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 70% from 68.40% 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 $2350, a break below the target of $2340/$2320. The yellow metal faces minor resistance around $2370 and a breach above will take it to the next level of $2400/$2425/$2448.

It is good to buy on dips around  $2350 with an SL of around $2330 for a TP of $2400..