FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1802.54

Kijun-Sen- $1797.49

Gold climbed above $1800 on board-based US dollar weakness. The US dollar index lost more than 100 pips after a surprise move by the Bank of Japan. The sudden shift in bond yield control dragged the global stock market. The yellow metal hits a high of  $1821.16 and is currently trading around $1814.15

US dollar index- Bearish. Minor support around 103.40/102. The near-term resistance is at 104.60/106.

 According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec rose to 70% from 57.3% a week ago.

 The US 10-year yield traded higher for the third consecutive day. The US 10 and 2-year spread narrowed to -55 basis points from -85 bpbs.

Factors to watch for gold price action-

 Global stock market- Bearish (Positive 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/$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.