FxWirePro- Gold Daily Outlook

FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour  chart)
 
Tenken-Sen- $1926.44
 
Kijun-Sen- $1904.21
 
The gold price gained sharply as geopolitical tension escalated. It hit a high of $1962.69 yesterday and is currently trading at around $1946.77.

The demand for safe-haven assets increased after Israel bombed a hospital in Gaza killing over 500 people. US September Building permits declined 4.4% to 1473000 and housing starts rose 7% every month in September.

Major economic data for the day

Oct 19th, 2023, Fed Powell speech (4:00 pm GMT)
Philly Fed Manufacturing Index    (12:30 pm GMT)
    

US dollar index-   Neutral. Minor support around 105.80/105. The near-term resistance is 107.50/109.

According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 93.90% from 90.9% a week ago.
 
 The US 10-year yield surged past 4.90% for, first time since July 2007 on rate hike fears. The US 10 and 2-year spread narrowed to -28.2% 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- Bullish (Positive for gold)
 
Technical:
 
The near–term support is around $1935, a break below targets of $1920/$1900. The yellow metal faces minor resistance around $1950 and a breach above will take it to the next level of $1970/$1980.

 It is good to buy on dips around $1940 with SL around $1920 for TP of $1970.