FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour  chart)

Tenken-Sen- $1960.34

Kijun-Sen- $1945.30

The gold price surged more than $30 and hit a 10-week high on geopolitical tension. It hit a high of $1982.35 yesterday and is currently trading at around $1977.67.

The yellow metal started to climb higher after Hamas bombed Israel on Oct 6th, 2023. The jump in oil prices of more than $8 in the past two weeks also supports gold at lower levels.

Federal Reserve Chairman said on Thursday that soaring US bond yield signals the end of rate hikes. He also said that inflation remains too high and central bank will take necessary actions to tackle inflation. The number of people who have filed for unemployment benefits declined by 13000 to 198000 for the period ended Oct 14th, below the estimate of 210000.

  US dollar index-   Bullish. 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 99.60% from 86.70% a week ago.

 The US 10-year yield surged past 5% for the first time since July 20th, 2007 after the hawkish Fed Chairman speech. 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 $1960 with SL around $1948 for TP of $2000.