FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1930.15

Kijun-Sen- $1919.24

Gold pared some of its gains after Fed monetary policy. It hit a low of $1924.50 and is currently trading around $1928.34.

US Fed kept its rate unchanged at 5.25% -5.50% as expected. In the new dot plot, 12 members voted for a 25 bpbs rate hike this year. Median GDP growth forecasts for 2023 increased to 2.1% from 1%. the hawkish surprise came in 2024. The central bank expects to cut rates twice next year from four rate cuts predicted in June 2023.

US dollar index-   Bullish. Minor support around 104.40/103.79. The near-term resistance is 105.50/106.

According to the CME Fed watch tool, the probability of a no-rate hike in Nov decreased to 66.40% from 70.1% a week ago.

 The US 10-year yield jumped more than 3.5% after Fed monetary policy. The US 10 and 2-year spread widened to -75% from -57%.

 Factors to watch for gold price action-

   Global stock market- Bullish (negative for gold)

  US dollar index - Bullish (negative for gold)

  US10-year bond yield- Mixed(neutral for gold)

Technical:

The near–term support is around $1920, a break below targets of $1880/$1870/$1850. The yellow metal faces minor resistance around $1930 and a breach above will take it to the next level of $1950/$1970.

 It is good to buy on dips around $1918-20 with SL around $1900 for TP of $1950/$1960.