FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1815.21

Kijun-Sen- $1809.15

Gold regained above $1800 on weak US pending home sales. It fell for the sixth month in Nov to 73.9 last month, the lowest level since 2001. The yellow metal is also boosted by the weak US dollar and strong crude oil prices. The yellow metal hits a high of $1809.48 and is currently trading around $1807.45.

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 29.1% from 27.9% a week ago.

 The US 10-year yield hits and half-month high at 3.89%.The yield spread between 10 and 2-year narrowed to -48.7 basis points from -85 bpbs.

Factors to watch for gold price action-

 Global stock market- weak (bullish  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.