Gold -
Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $2438
Kijun-Sen- $2442
Gold pared most of its gains as the US dollar rebounded. It hit a low of $2399 at the time of writing and is currently trading around $2401.70.
Markets eye existing home sales and Richmond manufacturing PMI, which will be released tomorrow for further direction.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 94% from 91.90% 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 $2400, a break below the target of $2385/$2360. The yellow metal faces minor resistance around $2420 and a breach above will take it to the next level of $2440/$2450/$2475/$2480.
It is good to buy on dips around $2400 with an SL of around $2385 for a TP of $2500.
