FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1655.61

Kijun-Sen- $1663.41

Gold pared some of its gains on strong US bond yields.  Hawkish commentary from Minneapolis Fed pushing the yields further higher.  The demand for riskier assets increased after UK Chancellor said the UK will roll back the previously announced tax cut plan. 

 The US 10-year yield remained above 4% in hopes of aggressive rate hikes. The US 10 and 2-year spread narrowed to -42 basis points from -57 bpbs.

 According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 93.5% from 81.3% a week ago.

Factors to watch for gold price action-

 Global stock market- Bullish  (Negative for gold)

US dollar index – Bullish (negative for gold)

US10-year bond yield- Bullish (negative for gold)

Technical:

The near–term support is around $1640, a close below targets of $1618/$1600.The yellow metal faces minor resistance around $1670, the breach above will take it to the next level of $1685/ $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.