FxWirePro- Gold Daily Outlook

Gold surged sharply after the Fed’s Chairman's speech at the Jackson Hole symposium. It hit a high of $2521.86 and is currently trading around $2520.

Market eyes on US Personal Consumption Expenditure (PCE) data on Friday for further direction.

According to the CME Fed watch tool, the probability of a 50 bpbs rate cut in Sep increased to 38.50% from 24% a week ago.

 US dollar index- Bearish. Minor support around 100.60/100. The near-term resistance is 102.50/103.

 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 $2495 (34 -4H EMA), a break below the target of $2485(55 -4H EMA)/$2470/$2430/$2400. The yellow metal faces minor resistance around $2525 and a breach above will take it to the next level of $2535/$2554.

Indicator (4-hour chart)

CCI (14)- Bullish

CCI (50)- Bullish

Average directional movement Index - Neutral. So good to go to buy on dips.

It is good to buy on dips around  $2490-92 with an SL of around $2470 for a TP of $2525/$2550.