Gold holds above $1875 on dismal USA economic data. USA new home sales declined by 16.6% and pending home sales dropped by 3.9%.
USA Fed meeting minutes show there is a 100% probability of a second times consecutive 50 bpbs interest rate hike in Jun 2022. It hits a high of $18 and is currently trading around $1861.30.According to the CME Fed watch tool, the probability of a 50 bpbs rate hike dropped to 93.3% from 97.6% a day ago.
This week Market eyes US ISM manufacturing and Nonfarm payroll data for further direction.
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)
The gold near–term support is around $1820, a breach below targets $1810/$1780/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The gold faces strong resistance of $1890, any breach above will take to the next level $1880/$1900/$1920.
It is good to buy on dips around $1810-15 with SL around $1800 for TP of $1920.