Ichimoku Analysis (Weekly chart)
Tenken-Sen- $2006.80
Kijun-Sen- $1923.67
Gold prices pared some of their gains on upbeat US non-farm payroll data. The non-farm payroll rose to 339000 in May, above the forecast of 190000. The unemployment rate rose to 3.7% vs an estimate of 3.5%. It hit a low of $1932 yesterday and is currently trading around $1945.95.
The number of private payrolls increased to 278000 in May vs 170K expected. The number of people who have filed for unemployment benefits rose by 2000 in the week ended May 232000 in the week ended May 27th.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.
