FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 hour chart)

Tenken-Sen- $1825.06

Kijun-Sen- $1847.61

Gold showed a minor pullback as the US treasury yield eased. It hit a high of $1829.06 yesterday and is currently trading at around $1829.02.

US private sector employment rose 89000 in Sep, compared to a forecast of 154000. US ISM services PMI rose 53.6 in Sep vs .estimate of 53.50.

US dollar index-   Neutral. Minor support around 106.35/105.65. The near-term resistance is 107.50/108.

According to the CME Fed watch tool, the probability of a no-rate hike in Nov decreased to 76.40% from 77.50% a week ago.

 The US 10-year yield declined more than 3.5% on mixed US economic data. The US 10 and 2-year spread narrowed to -32% from -75%.

 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- Mixed (neutral for gold)

Technical:

The near–term support is around $1800, a break below targets of $1785/$1760. The yellow metal faces minor resistance around $1830 and a breach above will take it to the next level of $1850/$1860/$1880.

 It is good to buy on dips around $1815-16 with SL around $1800 for TP of $1860.