Ichimoku Analysis (4- hour chart)
Tenken-Sen- $1720.80
Kijun-Sen- $1724.50
Gold gained more than $30 after the US Fed meeting minutes. The FOMC minutes indicate that a "substantial majority of participants judged that a slowing in the pace of increase would likely soon be appropriate,".The US dollar index lost more than 100 pips after dovish comments from fed officials durable goods orders rose 1% in Oct vs. forecast of 0.40%.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Dec increased to 24.2% from 14.6% a week ago.
The US 10-year yield declined more than 3.5% after hitting a low of 3.671%. The US 10 and 2-year spread widened to -69.7 basis points from -57 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 $1730, a break below targets of $1720/$1700/$1680. The yellow metal faces minor resistance around $1760, breach above will take it to the next level of $1785/$1800.Minor bullish continuation only if it breaks $1803.
It is good to buy on dips around $1748-50 with SL around $1730 for TP of $1800.
