FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- hour Chart)

Tenken-Sen- $1672.53

Kijun-Sen- $1693.33

Gold pared some of its gains made yesterday ahead of US Fed meeting minutes. The US dollar gained against all majors and holds above the 113 level.

 The US 10-year yield dropped more than 3.5% after hitting a high of 4%.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 78.4%  from 64.7% a week ago.

 Economic data to watch today

US PPI  12:30 PM GMT

Fed meeting minutes 6:00 PM

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.