FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1716.18

Kijun-Sen- $1716.18

Gold declined drastically after upbeat US CPI data.  The US inflation for Aug dropped to 8.3% YoY Compared to a forecast of 8.1%. Core CPI surged 0.6% over the month, to an annual rate of 6.3%. The overall trend is still bullish as long as support of $1680 holds.

According to the CME Fed watch tool, the probability of a 100 bpbs rate hike in Sep rose to 35% from 0% a day ago.

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 $1690, a close below targets $1671/$1650/$1600. Significant reversal only below $1650. The yellow metal faces minor resistance around $1720, breach above will take it to the next level of $1740/$1760/$1775/$1800/$1820.

It is good to buy on dips around $1678-80 with SL at around $1650 for TP of $1750/$1775.