FxWirePro- Gold Weekly Outlook

Ichimoku Analysis (Weekly  chart)

Tenken-Sen- $1881.76

Kijun-Sen- $1945.98

Gold showed a big gap in the Middle East conflict. It hit a high of $1855 at the time of writing and is currently trading at around $1851.40. the US economy has added 336000 jobs in Sep, compared to a forecast of 170000. The unemployment rate surged to 3.8% vs. an estimated 3.70%.

Israel declares war against Palestine as intense fighting continues in major areas after the Hamas surprise attack.

Oct 11th, 2023, US PPI (12:30 pm GMT)

Oct 12th, 2023, US CPI (12:30 pm GMT)

Oct 13th Prelim UoM consumer sentiments (2 pm GMT)

US dollar index-   Neutral. Minor support around 105.80/105. The near-term resistance is 106.50/107.50.

According to the CME Fed watch tool, the probability of a no-rate hike in Nov decreased to 78.30% from 81.70% a day ago.

 The US 10-year yield trades flat ahead of US Non-farm payroll data. The US 10 and 2-year spread narrowed to -30% from -75%.

 Factors to watch for gold price action-

   Global stock market- Bearish (positive for gold)

  US dollar index - Mixed (neutral for gold)

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

Technical:

The near–term support is around $1800, a break below targets of $1785/$1760. The yellow metal faces minor resistance around $1830 and a breach above will take it to the next level of $1850/$1860/$1880.

 It is good to buy on dips around $1815-16 with SL around $1800 for TP of $1860.