Ichimoku analysis (4-hour chart)
Tenken-Sen- $1777
Kijun-Sen- $1773
Gold surged sharply more than $30 despite upbeat US CPI data. The US Inflation rose 4% in September and annual inflation rose 5.4% highest increase in 13 years. The Fed meeting minutes show that the central bank to taper bond buying by mid-November or mid-December this year. The US dollar index is trading in a narrow range between 94.44 and 93.67 for the past week. Any surge past 94.50 confirms further bullishness. Gold hits a high of $1796 and is currently trading around $1791.20.
Factors to watch for gold price action-
Global stock market- mixed (neutral for gold)
US dollar index – Bearish (positive for gold)
US10-year bond yield- bearish (bullish for gold)
Technical:
It is facing strong support at $1750 violation below targets $1740/$1720. Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1770, any convincing break above will take the yellow metal $/$1825/$1835/$1860/$1900 is possible.
It is good to buy on dips around $1752-53 with SL around $1740 for TP of $1800.
