FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- hour chart)
 
Tenken-Sen- $1742.83
 
Kijun-Sen- $1758.85
 
Gold lost more than $50 from a temporary top of around $1786.50 on the strong US dollar. The dollar index halted its three days of bullishness and showed a minor profit booking. Markets eye US durable goods orders for further direction. The increase in COVID virus cases in the world's largest economy China hurts risk sentiment and prevents yellow metal from further downside.
     
  
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Dec increased to 28.9% from 14.6% a week ago.
 
 The US 10-year yield recovered more than 4.5% after hitting a low of 3.671%. The US 10 and 2-year spread widened to -69.7 basis points from -57 bpbs.
 
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)
 
Technical:
 The near–term support is around $1730, a break below targets of $1720/$1700/$1680. The yellow metal faces minor resistance around $1748, breach above will take it to the next level of $1755/$1761/$1775.Minor bullish continuation only if it breaks $1803.
 
 It is good to sell on rallies around $1758-60 with SL around $1775 for TP of $1735/$1720.