FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4-hours Chart)
Tenken-Sen- $1882
Kijun-Sen- $1885
Gold gained sharply after Fed's monetary policy. The central bank has hiked rates by 50 bpbs as expected and plans to trim its $9 trillion balance sheet. "The Committee is highly attentive to inflation risks," the FOMC said in its updated policy statement. The yellow metal gained after Fed Chairman ruled out a 75 bpbs rate hike in the next meeting. It hits an intraday high of $1903 and is currently trading around $1901.85.
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- Bullish (negative for gold)
Technical:
The near–term support is around $1880, a breach below targets $1850/$1800/$1750. Significant reversal only below $1750.The yellow metal faces strong resistance of $1920, any breach above will take to the next level $1950/$1970.
It is good to buy on dips around $1880-81 with SL around $1860 for TP of $1950.
