|   Technicals


  |   Technicals


FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour Chart)


Tenken-Sen- $1714.24


Kijun-Sen- $1694.44


Gold jumped sharply and holds above $1700 on the weak US dollar. The lackluster performance in US treasury yields and increased demand for safe-haven assets like gold on rumors of Credit Suisse collapse. The DXY rebounded slightly after hitting a low of 110.06 any close confirms further bearishness.


US 10-year yield recovered more than 6% from a minor bottom of 3.56%. The US 10 and 2-year spread narrowed to  -48 basis points from -41 bpbs.


US private companies have added 208K jobs in Sep compared to a forecast of 200K.


According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov declined to 69.4%  from 64.70% a week ago.


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)




The near–term support is around $1677, a close below targets $1665/$1650.The yellow metal faces minor resistance around $1730, the breach above will take it to the next level of $1740/1760/$1800. Minor bullish continuation only if it breaks $1740.


It is good to buy on dips around $1678 with SL around $1660 for TP of $1740.






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