FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4- Hour chart)

Tenken-Sen- $1787.95

Kijun-Sen- $1749.45

Gold declined more than $40 on profit booking. The minor pullback in the US dollar index and weak crude oil prices dragged the yellow metal lower. The US ISM services PMI rose to 56.5 in Nov compared to a forecast of 53.50. The yellow metal hits a low of $1766.30 and is currently trading around $1774.39.

US dollar index- Bearish. Minor resistance around 106.20/107.25. The near-term support is at 103.90.

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec rose to 79.4% from 75.8% a week ago.

 The US 10-year yield jumped more than 4% from a low of  3.473%. The US 10 and 2-year spread widened to -80.9 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 $1780, a break below targets of $1760/$1740. The yellow metal faces minor resistance around $1820, breach above will take it to the next level of $1860/$1900.

 It is good to buy on dips around $1760 with SL around $1740 for TP of $1860.