FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 hour chart)

Tenken-Sen- $1834.63

Kijun-Sen- $1833.15

Gold prices declined after hawkish FOMC meeting minutes. The minutes showed that "almost all participants agreed that it was appropriate to raise the target range for the federal funds rate 25 basis points at this meeting." Some members also favored a 50 bpbs rate hike. It hits a low of $1823 and is currently trading around $1827.95.

Major economic data:

US Prelim GDPq/q

Unemployment claims

  US dollar index-Neutral. Minor support around 102.50/101.50. The near-term resistance is 104.90/106.

 According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar jumped to 24% from 12.2% a week ago.

 The US 10-year yield traded flat despite hawkish comments from Fed members. The US 10 and 2-year spread narrowed to -77 basis points from -88% bpbs.

 Factors to watch for gold price action-

  Global stock market- bearish (Positive for gold)

 US dollar index - Mixed (Neutral for gold)

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

Technical:

  The near–term support is around $1816 (21-W EMA), a break below targets of $1800/$1788/$1748. The yellow metal faces minor resistance around $1850, and a breach above will take it to the next level of $1900/$1925/$1950.

 It is good to sell on rallies around $1848-51 with SL around $1871 for TP of $1800.