FxWirePro- Gold Daily Outlook

FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour Chart)
 
Tenken-Sen- $1713.11
 
Kijun-Sen- $1694.44
 
Gold pared some of its gains ahead of the US Non-Farm payroll. The US economy is expected to add 248K in Sep compared to the previous month's 315K.  Any dismal jobs data will push the yellow metal higher. The US dollar index regained above 112 from a minor bottom of 110.05.

The US 10-year yield recovered more than 7% from a minor bottom of 3.56%. The US 10 and 2-year spread widened to -43 basis points from -37 bpbs.

The number of people who have filed for unemployment benefits rose by 29000 compared to a forecast of 219000.

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov declined to 75.9%  from 53.20% a week ago.

Factors to watch for gold price action-
 
Global stock market- mixed (neutral for gold)
 
US dollar index – Bullish  (negative for gold)
 
US10-year bond yield- Bullish (negative for gold)
 
Technical:
 
The near–term support is around $1677, a close below targets of $1665/$1650.The yellow metal faces minor resistance around $1730, the breach above will take it to the next level of $1740/1760/$1800. Minor bullish continuation only if it breaks $1740.
 
It is good to buy on dips around $1678 with SL around $1660 for TP of $1740.