FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour  chart)

Tenken-Sen- $1994.06

Kijun-Sen- $1986.34

Gold pared some of its gains on improved risk appetite. It hit a high of $2009.42 yesterday and is currently trading at around $1991.80.

Markets eye development in Middle east as war between Israel and Hamas intensifies.

Major Economic data for the day

Oct 31st, 2023, Employment cost index  q/q (12:30 pm GMT)

                          S&P/CS Composite -20 HPI y/y  (1 pm GMT)

                         Chicago PMI and CB consumer confidence (1:45 and 2 p.m. 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 decreased to 98.3% from 98.9% a week ago.

 The US 10-year yield declined slightly on easing geopolitical tension. The US 10 and 2-year spread narrowed to -16.20% 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 $2010 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.