FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- Hour chart)

Tenken-Sen- $1762.55

Kijun-Sen- $1759.88

Gold surged more than $30 after the Fed chairman's speech. He said that Fed could slow the pace of rate hikes in December and it has a "long way to go" in bringing inflation down.US dollar index pared most of its gains made yesterday.

US dollar index- Bearish. Minor resistance around 106.20/107.25. The near-term support is at 105.

US private sector employment has added 127000 in Nov compared to a forecast of 196K.  Markets eye the US Core PCE index and US ISM manufacturing index for further direction.

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Dec dropped to 21.8% from 33.7% a day ago.

 The US 10-year yield lost more than 5% after less hawkish Fed chairman comments.The US 10 and 2-year spread narrowed to -72 basis points from -80 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.