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FxWirePro- Gold Daily Outlook

Gold -

 

Ichimoku Analysis (4 Hour chart)

 

Tenken-Sen- $2467.88

 

Kijun-Sen- $2437

 

Gold pared some of its gains due to profit booking. It hit a low of $2451 at the time of writing and is currently trading around $2471.

 

US economic data

 

US Building permits - strong (negative for gold)

 

US housing starts - positive (negative for gold)

 

Market eyes ECB monetary policy meeting today for further direction.

 

 

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 91.70% from 69.7% a week ago.

 

 US dollar index- Bearish. Minor support around 103.60/103. The near-term resistance is 104.20/105.

 

 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 $2450, a break below the target of $2440/$2410/$235. The yellow metal faces minor resistance around $2485 and a breach above will take it to the next level of $2500.

It is good to buy on dips around  $2460-61 with an SL of around $2440 for a TP of $2500.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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