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.
.
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)
