FxWirePro- Gold Daily Outlook

Gold trades weak on board-based US dollar buying.  It hit a low of $2604 at the time of writing and is currently trading around $2614.49.

The demand for safe-haven assets declined as  Hezbollah group based in Lebanon backs ceasefire talks with Israel.

US 10-year yield gained more than 8% in the past four days as the chance of aggressive rate cut decreased.

US dollar index-

The US dollar index consolidating after a massive pullback. Any close above 102.78 confirms a bullish continuation. 

According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in Nov increased to 86.70% from 64.80% a week ago.

Technical (4 hour chart)-

The yellow metal trades below short-term (34 and 55 EMA ) and below long-term (200- and 365 Hull MA) in the 4-hour chart.

The near–term support is around $2600, a break below targets of $2570/$2560/$2545/$2520/$2470. Major bearish continuation only below $2470.The yellow metal faces minor resistance around $2625 and a breach above will take it to the next level of  $2640/$2654/$2670/$2689/$2700.

Indicator (4- hour chart)

CCI (50)- Bearish

Average directional movement Index - Bearish

It is good to sell on rallies around $2628-30 with SL around $2650 for TP of $2570.