FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)
 
Tenken-Sen- $1680.27
 
Kijun-Sen- $1767.44

Gold showed a minor pullback above $1650 ahead of Fed monetary policy.  The central bank expected to hike rates by 75 bpbs. Markets eye US Fed chairman Powell's comments on the pace of further rate hikes. Any hawkish statement from Fed will push gold prices further down. The yellow metal hits a high of  $1653.30 and is currently trading around $1650.42.

The US ISM manufacturing index fell to 50.2 last month, the lowest reading since May 2020. Economic data to be watched are US ADP employment.
  
 The US 10-year yield recovered nearly 5.5% after hitting a low of 3.91%. The US 10 and 2-year spread widened to -46 basis points from 23.9- bpbs.
 
 According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov dropped to 85.5% from 92.5% a week ago.
 
Factors to watch for gold price action-

 Global stock market- Bullish (Negative for gold)
 
US dollar index – Mixed  (Neutral for gold)
 
US10-year bond yield- Mixed (Neutral for gold)
 
Technical:

The near–term support is around $1630, a close below targets of $1620/$1600. The yellow metal faces minor resistance around $1660, the breach above will take it to the next level of $1675/$1685/ $1700. Minor bullish continuation only if it breaks $1740.

 It is good to sell on rallies around $1668-70 with SL around $1685 for TP of $1600.