Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1663.69
Kijun-Sen- $1656.64
Gold is trading in a narrow range between $1674.93 and $1654.92 for the past three days. The European Central bank hiked interest rates for a second consecutive month by 75 bpbs and toughed its norms on TLTRO to banks.US GDP grew at an annual rate of 2.6% in Q3 compared to a forecast of 2.3%.
The yellow metal hits an intraday low of $1654 and is currently trading around $1662.
US GDP grew at an annual rate of 2.6% in Q3 compared to a forecast of 2.3%.
The US 10-year yield declined nearly 10% after hitting a multi-year high of 4.33%. The US 10 and 2-year spread narrowed to -37 basis points from -57 bpbs.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov dropped to 84.8% from 95% 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 $1654, a close below targets of $1638/$1630/1620. The yellow metal faces minor resistance around $1675, 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 $1650-51 with SL around $1637 for TP of $1740.
