FxWirePro- Gold Daily Outlook

FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour Chart)
 
Tenken-Sen- $1671.06
 
Kijun-Sen- $1671.06
 
Gold recovered nearly $30 on safe-haven demand and short covering. The yellow metal was one of the worst performers in the past one and half months due to the hawkish rate hike by the fed and other major central banks. The US 10 and 2-year spread dropped to -58 basis points, the most since 2000. The US dollar index hits a fresh 20-year high and any breach above 112 confirms a bullish continuation.

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 68.5% from 59.7% 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 buy above $1687 with SL around $1670 for TP of $1740.