FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1849.66

Kijun-Sen- $1836.51

Gold regained above $1850 on the weak US dollar. It dropped sharply despite the hawkish US-fed monetary policy. The US dollar index dropped to 103.41 yesterday and showed a minor pullback. Unexpected rate hike of more than 50bpbs by the Swiss National bank also puts pressure on the yellow metal.  It hits a high of $1857 yesterday and is currently trading around $1843.90.

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 $1835, a breach below targets $1820/$1780/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1860, any breach above will take it to the next level of $1880/$1900/$1920.

It is good to sell on rallies around $1850 with SL around $1861 for TP of $1750.