FxWirepro: Gold Daily outlook
Ichimoku analysis (4-hour chart)
Tenken-Sen- $1768
Kijun-Sen- $1779
Gold consolidating in a narrow range between $1750 and $1800 for the past week. The declining US dollar and treasury yields are supporting the yellow metal at lower levels. US industrial production data dropped by -1.3% in Sep compared to a forecast of 0.30%. Markets eye US Housing starts and Fed member speech for further direction. The US dollar index hits two weeks low and any breach below 93.60 confirms further bearishness. Gold hits a high of $1775.85 and is currently trading around $1774.
Factors to watch for gold price action-
Global stock market- Slightly bullish (negative for gold)
US dollar index – Bearish (positive for gold)
US10-year bond yield- bearish (positive for gold)
Technical:
It is facing strong support at $1740 violation below targets $1720/$1700. Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1800, any convincing break above will take the yellow metal $1825/$1835/$1860/$1900 is possible.
It is good to sell on rallies around $1785-86 with SL around $1800 for TP of $1720.
