FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1832.50
Kijun-Sen- $1834.60
Gold prices lost their shine after the hawkish Fed chairman speech. It shows that Fed is likely to increase rates more than anticipated. Fed chairman said that the central bank is also "prepared to increase the pace of rate hike. Gold hits a low of $1810.68 and is currently trading around $1810.44.
SNB Chief Jordan said that the Swiss National bank has not taken any aggressive action to calm down inflation and warns more rate hikes.
Major economic data today
US ADP employment data (1:15 pm GMT)
BOC rate statement (3:00 pm GMT)
ECB president Lagarde's speech (10:00 am GMT)
US dollar index-Bullish. Minor support around 105.30/104.60. The near-term resistance is 106/107.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar surged to 74.9% from 24% a week ago.
The US 10-year yield showed a minor pullback and holds above 4% after the hawkish Fed Chairman's Speech. The US 10 and 2-year spread widened to -107.2 basis points from -77% bpbs.
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 $1800, a break below targets of $1788/$1748. The yellow metal faces minor resistance around $1822, and a breach above will take it to the next level of $1840/$1860/$1888/$1900.
It is good to sell on rallies around $1828-30 with SL around $1850 for TP of $1760/$1748.


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