FxWirePro- Gold Daily outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1947.86

Kijun-Sen- $1948.73

Gold prices recovered more than $20 on short covering. Markets eye the US House of Representatives vote on the US debt deal for further direction. It hit a high of $1963.35 yesterday and is currently trading around $1959.72.

US consumer confidence fell in May to 102.30 from 103.70 in Apr, slightly above the forecast of 99.

 US dollar index- Bullish. Minor support around 102.30/101.50. The near-term resistance is 104.40/105.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June increased to  63% from 36.40% a week ago.

 The US 10-year yield pared some of its gains due to profit booking. The US 10 and 2-year spread narrowed to -81.20% from -108%.

 Factors to watch for gold price action-

   Global stock market- bullish (negative for gold)

  US dollar index - Bullish  (negative for gold)

  US10-year bond yield- Bullish (Bearish for gold)

Technical:

The near–term support is around $1935, a break below targets of $1920/$1900.The yellow metal faces minor resistance around $1955, and a breach above will take it to the next level of $1970/$2000/$2020/$2040/$2070/$2100/$2150.

 It is good to sell on rallies around $1960  with SL around $1975 for TP of $1920/$1900.