FxWirePro- Gold Daily Outlook (Please ignore the previous gold outlook posted toay

Ichimoku Analysis (4-hourchart)

Tenken-Sen- $1634.62

Kijun-Sen- $1643.15

Gold showed a minor pullback above $1650 ahead of Fed monetary policy.  The central bank expected to hike rates by 75 bpbs. Markets eye US Fed chairman Powell's comments on the pace of further rate hikes. Any hawkish statement from Fed will push gold prices further down. The yellow metal hits a high of  $1653.30 and is currently trading around $1650.42.

The US ISM services index fell to 54.40 last month, the lowest reading in 2-1/2 years. The number of people who have filed for unemployment benefits dropped to 217000 last week, compared to a forecast of 220K.

 The US 10-year yield recovered nearly 5.5% after hitting a low of 3.91%. The US 10 and 2-year spread widened to -46 basis points from 23.9- bpbs.

 According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov dropped to 85.5% from 92.5% a week ago.

Factors to watch for gold price action-

 Global stock market- Bullish (Negative for gold)

US dollar index – Mixed  (Neutral for gold)

US10-year bond yield- Mixed (Neutral for gold)

Technical:

The near–term support is around $1630, a close below targets of $1620/$1600. The yellow metal faces minor resistance around $1660, the breach above will take it to the next level of $1675/$1685/ $1700. Minor bullish continuation only if it breaks $1740.

 It is good to buy on dips around  $1635-37 with SL around $1617 for TP of $1700.