FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1650.36

Kijun-Sen- $1644.14

Gold showed a minor pullback on the weak US dollar.  Sales of US tech giants Microsoft and Alphabet rose marginally and missed the quarterly estimate. Company planning to cut its ad expenditure due to economic slowdown. The chance of an economic slowdown has increased the demand for safe-haven assets like yen and Gold. The yellow metal hits an intraday high of $1657.80 and is currently trading around $1655.75.

 The US 10-year yield declined more than 6.5% after hitting a multi-year high of 4.33%. The US 10 and 2-year spread narrowed to -30 basis points from -57 bpbs.

 According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov dropped to 91.7% from 94.6% a week ago.

Factors to watch for gold price action-

 Global stock market- Bullish (Negative for gold)

US dollar index – Bearish (Positive for gold)

US10-year bond yield- Bearish (Positive for gold)

Technical:

The near–term support is around $1637, a close below targets of $$1620/$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 buy on dips around $1608-10 with SL around $1570 for TP of $1740.