FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour Chart)

Tenken-Sen- $1631.84

Kijun-Sen- $1653.07

Gold lost its shine on the surging  US dollar.  It hits a multi-year high in hopes of an aggressive rate hike by the Fed. Markets eye the US Fed chairman's speech today for further direction.  US 10-year yield jumped to 4% highest level in 12-year after the hawkish fed rate hike. The US 10 and 2-year spread narrowed to -31%  from -58% basis points.

US durable goods orders fell to -0.20% in Aug for the second consecutive month compared to a forecast of 0.10%.  US CB consumer confidence rose to 108 in Sep better than the estimate of  104.

 According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 59.50% from 70% 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 $1620, a close below targets $1598/$1580.The yellow metal faces minor resistance around $1636, the breach above will take it to the next level of $1650/$1660/$1680. Minor bullish continuation only if it breaks $1740.

It is good to sell on rallies around$1650-51 with SL around $1662 for TP of $1600.