FxWirePro- Gold Daily Outlook

FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)
 
Tenken-Sen- $1801.91
 
Kijun-Sen- $1801.09
 
Gold lost more than $50 after the hawkish Fed rate hike. The central bank hiked 50 bpbs at 4.25% -4.5%, the fourth consecutive increase. The dot plot shows the median rate at end of 2023 at 5.1% vs 4.6% at the September meeting. The US dollar index gained more than 100 pips after the monetary policy. The yellow metal hits a low of  $1773.50 and is currently trading around $1775.80.

 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 25 bpbs rate hike in Feb 2023 rose to 73% from 43.90% a week ago.
 
 The US 10-year yield showed a minor pullback from a minor bottom of 3.40%. The US 10 and 2-year spread widened to -75 basis points from -63.5% 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.