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.
