FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4 hour chart)

Tenken-Sen- $1986.07

Kijun-Sen- $1987.02

Gold lost its shine on easing Geo political tension. It hit a low of $1972.96 and is currently trading around  $1972.85. The yellow metal was one of the best performers the previous month as a war between Israel and Gaza intensified.

The increase in risk appetite across investors has dragged the yellow metal from a multi-month high. Markets eye FOMC member Waller's speech today for further movement.

US dollar index-   Bearish. Minor support around 104.80/104. The near-term resistance is 106.25/107.50.

According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 90.2% from 74.40% a week ago.

 The US 10-year yield showed a minor pullback of more than 4% from a minor bottom of 4.48%. The US 10 and 2-year spread widened to  -28% from -22%.

 Factors to watch for gold price action-

   Global stock market- Bearish (positive for gold)

  US dollar index - Bearish (positive for gold)

  US10-year bond yield- Bearish (positive for gold)

Technical:

The near–term support is around $1970, 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 sell below $1970 with SL around $1980 for TP of $1950.