Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $1674.21
Kijun-Sen- $1649.42
Gold pared some of its gains made on Friday. The yellow metal surged more than $50 after mixed US Non-Farm payroll data. The economy added 267K jobs in Oct, unemployment rose to 3.7% from 3.5%.data. Following the US NFP report, the probability of a 50 bpbs rate hike in Dec increased by 43.2% from 38.5% a day ago.
Markets eye US mid-term elections and CPI data for further direction.
The US 10-year yield recovered after a minor sell-off to 4.125%. The US 10 and 2-year spread narrowed to -50 basis points from -67 bpbs.
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- Bullish (negative for gold)
Technical:
The near–term support is around $1660, a break below targets of $1650/$1640/$1630. The yellow metal faces minor resistance around $1685, the breach above will take it to the next level of $1700/$1740.Minor bullish continuation only if it breaks $1740.
It is good to buy on dips around $1650-51 with SL around $1630 for TP of $1700/$1740.
