Ichimoku Analysis (4- hour Chart)
Tenken-Sen- $1686.50
Kijun-Sen- $1696.80
Gold showed a follow thorough selling due to the strong US dollar. DXY gained above 113 as upbeat jobs report increased the chance of aggressive rate hikes by the Fed.
The US 10-year yield recovered again towards 4%. The US 10 and 2-year spread narrowed to -35 basis points from -37 bpbs.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 77.9% from 64.7% 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 $1660, a close below targets of $1650/$1618.The yellow metal faces minor resistance around $1680, the breach above will take it to the next level of $1700/$1720/$1740/1760/$1800. Minor bullish continuation only if it breaks $1740.
It is good to sell on rallies around $1678-80 with SL around $1700 for TP of $1615.
