FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1767.30

Kijun-Sen- $1769.91

Gold is trading lower for a second consecutive day on profit booking.  US October housing starts declined by 4.2% to a seasonally adjusted annual rate of 1425K from the previous month's 1493K. Building permits fell 2.4% in Oct, compared to a 1.4% contraction in Sep.  The number of people who have filed for unemployment benefits eased to 222K for the week ended on Nov 11th vs. the forecast of 225K.

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec dropped to 80.6% from 85.4% a week ago.

 The US 10-year yield lost more than 13% after hitting a high of 4.244%. The US 10 and 2-year spread widened to -68 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 $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.