FxWirePro- Gold Daily Outlook

Gold -

Gold showed a minor sell-off due to profit booking. It hit a low of $2503 at the time of writing and is currently trading around $2507.

The yellow metal declined slightly after upbeat US CB  Consumer confidence. US conference board consumer confidence rose to 103.30 in Aug, compared to a forecast of  100.70.  

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased to 65.50% from 68% 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 $2496 (55 -4H EMA), a break below the target of $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)- Bearish

CCI (50)- Bearish

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

It is good to buy on dips around  $2470 with an SL around $2450 for a TP of $2525/$2550.