FxWirePro-Gold Daily Outlook

Ichimoku Analysis (4- hour chart)

Tenken-Sen- $1926.99

Kijun-Sen- $1921.80

Gold trading in a narrow range between $1911 and $1942 for the past four days. The yellow metal showed a minor decline after the upbeat US Flash PMI. Gold hits a low of $1917.21 yesterday and is currently trading around $1930.70.

US flash manufacturing and services PMI came at 46.6 and 46.8 respectively, above the estimate.

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 98.1% from 94.70% a week ago.

 The US 10-year yield pared some of its gains after hitting a high of 3.55%. Any break and close below 3.26% confirm minor bearishness. The yield spread between 10 and 2-year narrowed to -69.5 basis points from -75 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.