FxWirePro-Gold Daily Outlook

Ichimoku Analysis (4- hour chart)

Tenken-Sen- $1924.28

Kijun-Sen- $1917.14

Gold recovered above $1925 after a minor sell-off.  Markets remain silent due to the Chinese lunar new year holiday. Markets eye US PCE data on Friday for further direction. Gold hits a low of $1911 yesterday and is currently trading around $1935.34.

Events to watch out for the day-  US Flash services PMI and manufacturing PMI

US dollar index- Bearish. Minor support around 101.50/100. The near-term resistance is 103.50/104.50.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Feb rose to 100% from 94.70% a week ago.

 The US 10-year yield gained after hitting a low of 3.32%. Any break and close above 3.62% confirm minor bullishness. The yield spread between 10 and 2-year widened to -71.5 basis points from -46.9 bpbs.

 Factors to watch for gold price action-

  Global stock market- bearish (bullish for gold)

 US dollar index – Bearish (positive for gold)

 US10-year bond yield- Bearish (Positive for gold)

Technical:

  The near–term support is around $1890, a break below targets of $1865/$1825.The yellow metal faces minor resistance around $1935, and a breach above will take it to the next level of $1950/$1969.

 It is good to buy on dips around $1890 with SL around $1880 for TP of $1935/$1950.