FxWirePro- Commodity daily update

Gold

Ichimoku Analysis (4 hour chart)

Tenken-Sen- $1984.98

Kijun-Sen- $2006.54

Gold is trading lower ahead of the US FOMC policy meeting. It hit a low of $1977.26 and is currently trading at around $1978.75.

US Nov CPI came in line with expectations, with headline CPI coming at 0.10% m/m and core inflation rising at 0.30%. While yearly headline inflation declined to 3.1% from 3.2% the previous month. Markets eagerly await the Fed statement and dot plot for further direction. Any dovish comments from the Fed will push gold prices higher above the $2000 level.

Major economic data for the day

Dec 13th, 2023,

US PPI m/m (1:30 pm GMT)

US federal funds rate(7 pm GMT)

US dollar index- Bullish. Minor support around 102/100. The near-term resistance is 104.40/105.

According to the CME Fed watch tool, the probability of a no-rate hike in Dec decreased to 98.2% from 96% a week ago.

The US 10-year yield consolidating ahead of the FOMC meeting. The US 10 and 2-year spread widened to -53% from -34%.

Factors to watch for gold price action

Global stock market- Bullish (negative for gold)

US dollar index - Bullish (negative for gold)

US10-year bond yield- Bearish (Positive for gold)

Technical:

The near–term support is around $1970, a break below targets of $1950/$1932.The yellow metal faces minor resistance around $2000 and a breach above will take it to the next level of $2020/$2050.

It is good to sell on rallies around $2000 with SL around $2020 for TP of $1945.

Silver

Silver lost its shine after a minor pullback. The precious metal's upside is capped by a 200-day EMA ($23.20). Any daily close above $23.25 confirms a minor uptrend, a jump to $23.70/$24 is possible. Minor support is $22.60/$22/$21.80.

Crude oil

WTI crude pared most of its gains made this week. Markets await Crude inventories for further movement.

Major resistance- $75/80. Significant support- $68/$63.