Gold Daily Outlook

Gold Daily Outlook

Ichimoku Analysis (4-hour Chart)

Tenken-Sen- $1671.06

Kijun-Sen- $1671.06

Gold pared some of its gains after the hawkish Fed monetary policy. The central bank hiked rates by 75 bpbs to the 3-3.25% range and signaled a more aggressive increase in new projections. In new economic projections, the Fed projects the rate to reach 4.4% in 2022, and 4.65% in 2023. It has been said that job growth is robust and inflation remains "elevated".The US dollar index gained momentum and a fresh 20-year high after policy.

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 66.5% from 56.20% 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 sell below $1650 with SL around $1680 for TP of 1590.