FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour  chart)

Tenken-Sen- $1978.39

Kijun-Sen- $1973.61

Gold price recovered sharply despite upbeat US economic data. It hit a high of $1989.49 at the time of writing and is currently trading at around $1988.93.

US GDP grew at an annualized rate of  4.9% in the third quarter, compared to a forecast of 4.50%. US durable goods orders rose 4.7% m/m due to a surge in aircraft sales vs Estimate of 1.9%.

European Central Bank has kept its rates unchanged at 4%. The central bank also pointed out that inflation is slowly coming down to its target of 2%.

Major Economic data for the day

Oct 27, 2023, Core PCE price index m/m (12:30 pm GMT)

                          Revised UoM consumer sentiment (2:00 pm GMT)

US dollar index-   Bullish. Minor support around 105/104.50. 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 99.5% from 97.60% a day ago.

 The US 10-year yield pared some of its gains despite strong US GDP data. The US 10 and 2-year spread narrowed to -19.20% 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 $1975, a break below targets of $1960/$1950/$1926. The yellow metal faces minor resistance around $2000 and a breach above will take it to the next level of $2020/$2048.

 It is good to buy on dips around $1970-72 with SL around $1960 for TP of $2000/$2020.