FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour Chart)

Tenken-Sen- $1701.16

Kijun-Sen- $1714.45

Gold continues to trade lower on surging US treasury yields.  US PPI for August declined by -0.1% in line with expectations. The core producer price index jumped 0.40% vs the estimate of 0.30%. Markets eye US retail sales and empire state manufacturing index for further direction. 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 30% from 0% a week 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 $1680, 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.