Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $2334
Kijun-Sen- $2323
Gold showed a minor pullback after dismal US economic data. It hit a high of $2365 yesterday and is currently trading around $2362.
US economic data for the day
Philly Fed manufacturing Index - weak (Positive for Gold)
Building permits - bearish (positive for Gold)
US jobless claims - weak (positive for gold)
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Sep decreased to 57.90% from 61.10% a week ago.
US dollar index- Bullish. Minor support around 104/103. The near-term resistance is 105.50/107.
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- Bearish (Positive for gold)
Technical:
The near–term support is around $2340, a break below the target of $2320/$2300/$2280/$2260. The yellow metal faces minor resistance around $2360 and a breach above will take it to the next level of $2375/$2400.
It is good to buy on dips around $2340 with an SL of around $2320 for a TP of $2400.
