FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1638.52

Kijun-Sen- $1647.14

Gold trades weak on surging US bond yields. An aggressive rate hike by Fed pushed yields higher. The yellow metal recovered after hitting a low of $1622.50 on the minor decline in the US dollar index. Markets eye US initial jobless claims and Philly fed manufacturing Index for further direction.

 The US 10-year yield breaks the previous week's high and hits a 14-year high. The US 10 and 2-year spread narrowed to -44 basis points from -57 bpbs.

 According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 99.10% from 97.30% 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 $1600, a close below targets of $1544/$1500.The yellow metal faces minor resistance around $1650, the breach above will take it to the next level of $1670/$1685/ $1700/$1720/$1740/1760/$1800. Minor bullish continuation only if it breaks $1740.

It is good to buy on dips around $1608-10 with SL around $1570 for TP of $1740.