FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1874.74

Kijun-Sen- $1910.25

Gold trades flat after mixed opinions from Fed chairman Powell. He reiterated that inflation is slowing down, but highlighted that it would take a "significant period". He also mentioned that the central bank to hike the rate more than anticipated if inflation surges sharply. It hit a high of $1884 yesterday and is currently trading around $1882.

  US dollar index- Bullish. Minor support around 101.50/100.80. The near-term resistance is 104/105.

 According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Feb rose to 93.7% from 82.40% a week ago.

  The US 10-year yield traded higher for the second consecutive day. Any break and close above 3.63% confirm minor bullishness. The yield spread between 10 and 2-year widened to -81.30 basis points from -72.40 bpbs.

 Factors to watch for gold price action-

  Global stock market- bullish (negative for gold)

 US dollar index – Bullish (Bearish for gold)

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

Technical:

  The near–term support is around $1860, a break below targets of $1845/1828/$1800. The yellow metal faces minor resistance around $1880, and a breach above will take it to the next level of $1900/$1925/$1950.

 It is good to sell on rallies around $1900 with SL around $1925 for TP of $1800.