FxWirePro- Gold Weekly Outlook

Ichimoku Analysis (Weekly Chart)

Tenken-Sen- $1711.43

Kijun-Sen- $1806.65

Gold pared most of its gains after the upbeat US NFP. The US economy has added 263K jobs in Sep compared to a forecast of 265000. The unemployment rate dropped to 3.5% vs3.7% the previous month. DXY showed a massive recovery of more than 250 pips from a low of 110.06.

The US 10-year yield recovered more than 2%  as Fed continued aggressive rate hikes. The US 10 and 2-year spread widened to -43 basis points from -37 bpbs.

The number of people who have filed for unemployment benefits rose by 29000 compared to a forecast of 219000.

According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Nov rose to 78.1%  from 56.5% a week ago.

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 $1677, a close below targets of $1665/$1650.The yellow metal faces minor resistance around $1730, the breach above will take it to the next level of $1740/1760/$1800. Minor bullish continuation only if it breaks $1740.

It is good to buy on dips around $1678 with SL around $1660 for TP of $1740.