FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1801.09

Kijun-Sen- $1797

Gold surged more than $40 on easing US inflation. US consumer prices jumped 7.1% YoY, slightly below the estimate of 7.3%. Core CPI month-on-month basis came at 0.10% vs forecast of 0.30%. The yellow metal hits a high of  $1824.50 and is currently trading around $1809.80.

 US dollar index- Bearish. Minor resistance around 104.60/105.50. The near-term support is at 103.50.

 According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec rose to 79.40% from 78.20% a week ago.

 The US 10-year yield lost more than 5% from this week's high of 3.61%. The US 10 and 2-year spread narrowed to 71 basis points from -85 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 $1760, a break below targets of $1740$1720/$1700. 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 $1780 with SL around $1760 for TP of $1860.