Ichimoku Analysis (Weekly chart)
Tenken-Sen- $1926.78
Kijun-Sen- $1832.50
Gold prices trade weak on the minor pullback in the US dollar. It hits a low of $1971.50 and is currently trading around $1980.17.
The number of people who have filed for unemployment benefits increased by 5000 in the week ending Apr 15, the highest level since Nov 2021. US Philly manufacturing index drops to -31.3 in Apr vs. -19.20 expected. US Flash manufacturing PMI in Apr came at 53.70 in Apr came at 50.40, compared to a forecast of 49. Services PMI surged to 53.50 this month, the highest level since May.
US dollar index- Neutral. Minor support around 101.50/100. The near-term resistance is 120.35/103.
Major economic data
Apr 25th, 2023 US CB consumer confidence (2 pm GMT).
US New Home Sales
Richmond Manufacturing Index
Apr 27th US Advance GDP Q/Q (12:30 pm)
US initial jobless claims
Apr 28th US Core PCE price index m/m
Chicago PMI
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in May increased to 88.60% from 85.20% a week ago.
The US 10-year yield showed a minor jump in hopes of a 25 bpbs rate hike. The US 10 and 2-year spread narrowed to -61.6% from -108%.
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 $1970, a break below targets of $1955/$1935.The yellow metal faces minor resistance around $2020, and a breach above will take it to the next level of $2050/$2070.
It is good to buy on dips around $1980 with SL around $1960 for TP of $2040/$2070.
