FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1924.26

Kijun-Sen- $1918.95

Gold showed a minor pullback after hitting a low of $1913.97 on risk aversion. It is currently trading at around $1928.34.

The yellow metal plummeted after the hawkish fed rate pause. BOE and the Swiss National Bank also kept their rates unchanged.

The number of people who have filed for unemployment benefits decreased by 200000 in the week ended Sep 16 to 201K, compared to a forecast of 224K.

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 increased to 73.8% from 63.0% a week ago.

 The US 10-year yield surged sharply after Fed monetary policy. The US 10 and 2-year spread narrowed to -63% from -75%.

 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.