FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1808.63

Kijun-Sen- $1809.55

Gold jumped more than $15 on the weak US dollar. The yellow metal hits a high of $1820.41 and is currently trading around $1815.91.

 The number of people who have filed for unemployment benefits rose by 9000 to 225000, up from the previous week's 216000. Major economic data to watch today Chicago PMI.

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 dropped to 27.2% from 31% a week ago.

 The US 10-year yield declined more than 2% from a minor top of 3.892% on profit booking. The yield spread between 10 and 2-year narrowed to -54.5 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 $1800, a break below targets of $1780/$1760/$1740/$1720/$1700. The yellow metal faces minor resistance around $1825, breach above will take it to the next level of $1840/$1860/$1900.

 It is good to buy on dips around $1778-80 with SL around $1760 for TP of $1825.