FxWirePro- Gold vs US 10-year yield (Bearish and bullish divergence)

Gold hits fresh all-time high ahead of US fed monetary policy. It hit a high of $2589.71 and is currently trading around $2584.30.

Chart pattern

Gold-  CCI (50) Bearish divergence (Daily chart)

US 10-year yield - CCI (50) Bullish divergence  (Daily chart)

According to the CME Fed watch tool, the probability of a 50 bpbs rate cut in Sep increased to 67% from 30% a week ago.

 US dollar index- Bearish. Minor support around 100.50/99.80. The near-term resistance is 101.40/102.

 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 $2570, a break below the target of $2560/$2544/$2535/$2520. The yellow metal faces minor resistance around $2590 and a breach above will take it to the next level of $2622/$2650.

Indicator (Daily chart)

CCI (14)- Bullish

CCI (50)- Bullish

Average directional movement Index - Bullish

It is good to sell on rallies around $2584-85 with SL around $2600 for TP of $2545/$2520.