FxWirePro- Commodity daily Update

Gold -

Ichimoku Analysis (Daily chart)

Tenken-Sen- $2038.73

Kijun-Sen- $2030.84

Gold lost more than $50 in the previous week on board-based US dollar selling. The University of Michigan rose to 78.80 in Jan compared to a forecast of 69.80, the highest level since Jul 2021.t of -7.0. US existing home sales declined for the 12th consecutive month to a seasonally adjusted annual rate of 3.7 million. The yellow metal hit a high of $2039.48 and is currently trading around $2022.68.

   According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 97.40% from 94.80% a week ago.

  US dollar index-  Bullish. Minor support around 103/102.40 The near-term resistance is 103.75/104.50.

 Factors to watch for gold price action-

   Global stock market- Bullish  (negative for gold)

  US dollar index - Bullish (Bearish  for gold)

  US10-year bond yield- Bullish (negative for gold)

Technical:

The near–term support is around $2000, a break below targets of $1970/$1956. The yellow metal faces minor resistance around $2050 and a breach above will take it to the next level of $2062/$2078.

 It is good to buy on dips around 2015-16 with SL around $1998 for TP of $2065/$2080.

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Silver-

Silver breaks significant support of $22.40 after a long consolidation. The precious metal trades below 21 and 55- EMA and long-term MA (200- MA) in the weekly chart.  Any weekly close below $22.23 confirms a bearish continuation. A decline to $20.68/$19.90 is possible. It is facing immediate resistance around $22.50. Any break above targets $23/$23.55.  

Crude oil-  

WTI crude oil prices pared some of their gains on a strong dollar and demand worries. Markets eye geopolitical tension in the Middle East update for further movement.

 Major resistance- $75.35/80. Significant support- $70/$68

Economic calendar

Canada retail sales  (1:30 pm GMT)

Prelim UoM consumer sentiment (3:00 pm GMT)

Existing Home Sales (3:00 pm GMT)