FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)
 
Tenken-Sen- $1683.64
 
Kijun-Sen- $1697.82
 
Gold showed a massive sell-off yesterday and hits the lowest level since Apr 2020.US dollar is staying in a range bound after mixed US retail sales. It rose 0.3% mom, above expectations of 0%. Core sales ex-auto dropped -0.3% mom vs estimate of 0%. Markets eye US UoM consumer sentiment for further direction.

US NY Fed empire state manufacturing index improved to -1.5 in Sep vs forecast of-12.70

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 76% from 75% a week ago.

Factors to watch for gold price action-
 
Global stock market- Bearish (positive  for gold)
 
US dollar index – Bullish (negative for gold)
 
US10-year bond yield- Bullish (negative for gold)
 
Technical:

The near–term support is around $1650, a close below targets $1620/$1598.The yellow metal faces minor resistance around $1680, breach above will take it to the next level of $1720/$1735. Minor bullish continuation only if it breaks $1740.
 
It is good to wait till gold closes below the $1674 level in the weekly chart (today).