FxWirePro- Gold Daily Outlook

Gold recovered sharply from yesterday’s low of $2492. It hits a high of $2521 at the time of writing and is currently trading around $2517.

Markets eye US GDP and initial jobless claims for further direction.

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased to 65.50% from 64% a day ago.

 US dollar index- Bearish. Minor support around 100.60/100. The near-term resistance is 101.35/102.

 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 $2499 (55 -4H EMA), a break below the target of $2470/$2449. 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  $2450 with an SL around $2430 for a TP of $2525/$2550.