FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- hour chart)

Tenken-Sen- $1749.18

Kijun-Sen- $1745.80

Gold is holding above $1750 on the weak US dollar. It has lost its shine after dovish comments in Fed FOMC meeting minutes.US dollar index dropped more than 200 pips from a minor top of 107.99.   

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Dec increased to 24.2% from 19.4% a week ago.

 The US 10-year yield declined nearly 5% after hitting a high of 3.84%. The US 10 and 2-year spread widened to -77 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.