FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1693.93

Kijun-Sen- $1747.06

Gold recovered more than $30 after hitting a low of $1753. The minor pullback in the US dollar index and US treasury yields prevented yellow metal from further upside.  Markets eye US President Biden and Chinese Premiere Xi Jinping meeting in G20 summit. 

Major events today –

US Empire state manufacturing Index – 1:30 pm

US PPI- 1:30 pm

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec increased to 80.6% from 52% a week ago.

 The US 10-year yield lost more than 10% after hitting a high of 4.244%. The US 10 and 2-year spread narrowed to -52 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 $1740, a break below targets of $1720/$1700/$1680. The yellow metal faces minor resistance around $1775, the breach above will take it to the next level of $1800/$1840.Minor bullish continuation only if it breaks $1803.

 It is good to buy on dips around $1760 with SL around $1740 for TP of $1800/$1840.