FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 hour chart)

Tenken-Sen- $1873.42

Kijun-Sen- $1892.48

Gold lost its shine on the strong US dollar. It hit a low of $1857.73 yesterday and is currently trading at around $1864.96.

US real GDP grew at an annual rate of 2.1% in Q2 as expected. The number of people who have filed for unemployment benefits rose to 204K in the week ended September 23rd, 2023, compared to a forecast of 215000.

Markets eye the US PCE index and Chicago PMI for further direction.

US dollar index-   Bullish. Minor support around 104.40/103.79. The near-term resistance is 107/108.

According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 81.6% from 77.5% a week ago.

 The US 10-year yield pared some of its gains on profit booking. The US 10 and 2-year spread narrowed to -48% from -75%.

 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 $1850, a break below targets of $1830/$1800. The yellow metal faces minor resistance around $1885 and a breach above will take it to the next level of $1900/$1920.

 It is good to sell on rallies around $1885-86 with SL around $1900 for TP of $1850.