FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1820.64

Kijun-Sen- $1833.88

Gold prices trade flat after a massive sell-off of more than $40. The yellow metal lost its shine after hawkish comments from Fed Chairman Powell. ECB President spoke yesterday in WTO Geneva that ECB would take maximum efforts to tackle inflation. Gold hits a low of $1810.68 and is currently trading around $1814.23

US private sector has added 242000 jobs in Feb up from 119000,  above the estimate of 197000.

Major economic data today

US Initial jobless claims   (1:30 pm GMT)

US dollar index-Bullish. Minor support around 105.30/104.60. The near-term resistance is 106/107.

 According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar surged to 74.9% from 24% a week ago.

 The US 10-year yield showed a minor pullback and holds above 4% after the hawkish Fed Chairman's Speech. The US 10 and 2-year spread widened to -107.2 basis points from -77% bpbs.

  Factors to watch for gold price action-

   Global stock market- bearish (Positive for gold)

  US dollar index - Bullish (Negative for gold)

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

Technical:

  The near–term support is around $1800, a break below targets of $1788/$1748. The yellow metal faces minor resistance around $1822, and a breach above will take it to the next level of $1840/$1860/$1888/$1900.

 It is good to sell on rallies around $1828-30 with SL around $1850 for TP of $1760/$1748.