FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 Hour chart)

Tenken-Sen- $1690.87

Kijun-Sen- $1666.83

Gold surged sharply more than $50 on the weak US dollar. Markets eye US mid-term elections and CPI for further direction. Any dip in inflation data will push the yellow metal prices further higher. US dollar index trades below 110, the lowest level since Sep 20th.

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec dropped to 54.4% from 44.50% a week ago.

 The US 10-year yield pared some of its gains after hitting a high of 4.23%. The US 10 and 2-year spread narrowed to -52.50 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- Bearish (Positive for gold)

Technical:

 The near–term support is around $1700, a break below targets of $1680/$1660/$1650. The yellow metal faces minor resistance around $1740, the breach above will take it to the next level of $1760/$1800.Minor bullish continuation only if it breaks $1740.

 It is good to buy on dips around $1680-82 with SL around $1660 for TP of $1740/$1760.