FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1832.19

Kijun-Sen- $1823.53

Gold trades flat ahead of fed meeting minutes. The yellow metal was one of its best performers in the past two weeks on risk aversion. It hits a high of $1850 and is currently trading around $1846.55.

 US dollar index- Neutral. The index pared most of its gains after hitting a multi-month low of 103.39. Minor support around 103.40/102. The near-term resistance is at 105/106.

According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Feb rose to 59.7% from 68.3% a week ago.

  The US 10-year yield declined by 6.2% on the global economic outlook. The yield spread between 10 and 2-year widened to -63.8 basis points from -46.9 bpbs.

Factors to watch for gold price action-

 Global stock market- weak (bullish for gold)

US dollar index – Mixed (Neutral for gold)

US10-year bond yield- Bullish (Negative for gold)

Technical:

 The near–term support is around $1825, a break below targets of $1807/$1780/$1760.The yellow metal faces minor resistance around $1850, and a breach above will take it to the next level of $1860 /$1900.

It is good to buy on dips around $1800 with SL around $1775 for TP of $1850.