Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1804.50
Kijun-Sen- $1803.89
Gold lost its shine after upbeat US GDP data. The US economy grew 3.2% between Jul and Sep, above the estimate of 2.9%. Markets eye the US core PCE price index which is a gauge for inflation for further direction. The yellow metal hits a low of $1784.91 and is currently trading around $1795.04.
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 75 bpbs rate hike in Dec rose to 31% from 26.10% a week ago.
The US 10-year yield showed a minor pullback. Of more than 8%.The US 10 and 2-year spread narrowed to -58 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 sell on rallies around $1805-08 with SL around $1825 for TP of $1750.
