FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1812.70

Kijun-Sen- $1809.15

Gold surged sharply yesterday with thin volumes and hits a 6-month high. The yellow metal is also boosted by the weak US dollar and strong crude oil prices. The yellow metal hits a high of $1833 and is currently trading around $1811.10.

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 Feb rose to 35% from 30% a week ago.

 The US 10-year yield traded higher for the second consecutive week. Any breach above 3.85% confirms a further up trend. The yield spread between 10 and 2-year narrowed to -49.8 basis points from -85 bpbs.

Factors to watch for gold price action-

 Global stock market- mixed (Neutral for gold)

US dollar index – Bearish (Positive for gold)

US10-year bond yield- Bullish (Negative 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 $1778-80 with SL around $1760 for TP of $1825.