FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1776.55

Kijun-Sen- $1744.37

Gold spiked after reports shows that Russia made missiles fall in Poland and two people lost life. The escalation of tension between Russia and Ukraine supports the yellow metal at lower levels. Markets eye US President Biden and Chinese Premiere Xi Jinping meeting in G20 summit. 

US annual PPI declines to 8% in Oct, below the forecast of 8.3%. NY Fed manufacturing index urged to 4.5 in Nov vs -5 expected.          

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec increased to 80.6% from 56.8% a week ago.

 The US 10-year yield lost more than 10% after hitting a high of 4.244%. The US 10 and 2-year spread narrowed to -52 basis points from -67 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 $1740, a break below targets of $1720/$1700/$1680. The yellow metal faces minor resistance around $1775, breach above will take it to the next level of $1800/$1840.Minor bullish continuation only if it breaks $1803.

 It is good to buy on dips around $1760 with SL around $1740 for TP of $1800/$1840.