FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4-hour Chart)
Gold recovered more than $50 on the weak US dollar. US dollar index halted its 4-month winning streak and lost more than 250 pips on profit booking. Markets eye the US Fed PCE price index and personal spending for further direction. US 10-year yield jumped lost more than 7.5% after hitting a multi-year high of 4.019%, the highest level in 12 years. The US 10 and 2-year spread narrowed to -41 basis points from -58% basis points
The number of people who have filed for unemployment benefits dropped by 16000 to 193000 the previous week, the lowest level in five months.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov declined to 56.1% from 72.9% a week ago.
Factors to watch for gold price action-
Global stock market- Bearish (positive for gold)
US dollar index – Bearish (positive for gold)
US10-year bond yield- Bullish (negative for gold)
The near–term support is around $1640, a close below targets $1620/$1598/$1580.The yellow metal faces minor resistance around $1670, the breach above will take it to the next level of $1680/$1700/$1720. Minor bullish continuation only if it breaks $1740.
It is good to buy on dips around $1650 with SL around $1640 for TP of $1700.
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