FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-Hour chart)

Tenken-Sen- $1842.82

Kijun-Sen- $1839.30

Gold pared some of its gains on the strong US dollar. It hits a low of $1825 and is currently trading around $1838.71.

Private sector employment rose by 235000 in Dec, above the estimate of 152K. The number of people who have filed for unemployment benefits declined to 204K in the week ending Dec 31st.

 US dollar index- Bullish. Minor support around 103.40/102. The near-term resistance is at 105.25/106.

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Feb rose to 41.4% from 27.2% a week ago.

Markets eye US NFP for further direction.

The US 10-year yield is trading flat ahead of jobs data. The yield spread between 10 and 2-year widened to -74 basis points from -46.9 bpbs.

Factors to watch for gold price action-

 Global stock market- weak (bullish for gold)

US dollar index – Bullish (Negative for gold)

US10-year bond yield- Bullish (Negative for gold)

Technical:

 The near–term support is around $1825, a break below targets of $1807/$1780/$1760.The yellow metal faces minor resistance around $1850, and a breach above will take it to the next level of $1860 /$1900.

It is good to sell on rallies around $1848-50 with SL around $1865 for TP of $1750.