FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1875.77
Kijun-Sen- $1889.71
Gold consolidating in a narrow range between $1886.50 and $1869 for the past three trading days. Fed speaker Willams delivered a hawkish outlook on monetary policy. He said that the central bank should continue to hike rates to bring inflation down. It hits an intraday low of $1869 and is currently trading around $1878.20.
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 declined to 89.3% from 90.8% a day ago.
The US 10-year yield showed a minor decline despite hawkish Fed speakers. Any break and close above 3.69% confirm minor bullishness. The yield spread between 10 and 2-year widened to -82 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.
