Gold recovered sharply from yesterday’s low of $2503 despite strong US economic data. It hit a high of $2526.80 at the time of writing and is currently trading around $2524.54.
Markets eye US PCE data for further direction. The core PCE is the main gauge of inflation for fed officials.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep increased to 67.50% from 64% a week ago.
US dollar index- Bearish. Minor support around 100.60/100. The near-term resistance is 101.6/102.
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 $2515 (55 -4H EMA), a break below the target of $2500/$2490/$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 a SL around $2430 for TP of $2525/$2550.
