Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1866.12
Kijun-Sen- $1844.66
Gold trades higher after dovish FOMC minutes. It hit a high of $1878 and is currently trading at around $1877.05.
According to these minutes, many participants saw continued downside risks to economic activity and upside risks to the unemployment rate. US PPI rose 0.50%, compared to a forecast of 0.30%. The core PPI excluding food, energy, and trade services increased by 0.30% vs. an estimate of 0.20%.
Major economic data for the day
Oct 11th, 2023, US CPI (12:30 pm GMT)
US unemployment claims
US dollar index- Neutral. Minor support around 105.80/105. The near-term resistance is 106.50/107.50.
According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 91.50% from 76.90% a week ago.
The US 10-year yield trades flat despite dovish FOMC minutes. The US 10 and 2-year spread narrowed to -38.9% from -75%.
Factors to watch for gold price action-
Global stock market- Bearish (positive for gold)
US dollar index - Mixed (neutral for gold)
US10-year bond yield- Mixed (neutral for gold)
Technical:
The near–term support is around $1865, a break below targets of $1855/$1840/$1830. The yellow metal faces minor resistance around $1880 and a breach above will take it to the next level of $1900/$1920.
It is good to buy on dips around $1862-63 with SL around $1850 for TP of $1900/$1920.
