FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour  chart)

Tenken-Sen- $1920.56

Kijun-Sen- $1895.57

The gold price showed a minor profit booking yesterday after a sharp rally of more than $100. It hit a low of $1908.24 and is currently trading at around $1913.80.

The US Empire State manufacturing index declines to -4.6, compared to a forecast of -7. Philadelphia President Patrick Harker said that Fed rate hikes are almost done and predicts weak inflation.

Major economic data for the day

Oct 17, 2023, Retail sales m/m (12:30 pm GMT)       

US dollar index-   Neutral. Minor support around 105.80/105. The near-term resistance is 106.60/107.50.

According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 95.3% from 88% a week ago.

 The US 10-year yield showed a minor pullback on geopolitical tension. The US 10 and 2-year spread narrowed to -38% 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 $1885, a break below targets of $1870/$1855/$1840/$1830. The yellow metal faces minor resistance around $1935 and a breach above will take it to the next level of $1950/$1970.

 It is good to buy on dips around $1900 with SL around $1878 for TP of $1920.