FxWirePro-  Commodity daily update

Gold -

Ichimoku Analysis (4 hour chart)

Tenken-Sen- $2034.38

Kijun-Sen- $2031.82

Gold showed a minor pullback on  US dollar weakness. It hit a low of $1973.15 and is currently trading at around $2041.48.

Housing starts in the US rose 14.80% in Nov to 1.56 million and single-family housing starts surged 18% highest level since May 2022.  US building permits declined 2.5% from the revised Oct rate of 1498000.

  According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in  Jan increased to 10.3% from 4.0% a week ago.

Major economic data for the day

        Dec 20th, 2023, US CB confidence (3 pm GMT)

                    Existing home sales

  US dollar index-   Bearish. Minor support around 101.75/101. The near-term resistance is 103.25/104.

  According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in  Jan increased to 10.3% from 4.0% a week ago.

 Factors to watch for gold price action-

   Global stock market- Bullish (negative for gold)

  US dollar index - Bearish (positive for gold)

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

Technical:

The near–term support is around $2015, a break below targets of $2000/$1970. The yellow metal faces minor resistance around $2050 and a breach above will take it to the next level of $2070/$2100.

 It is good to buy on dips around $2000 with SL around $1986 for TP of $2150.

Silver-

Silver recovered yesterday following in the footsteps of gold. The near-term resistance is around $24.30 (50% fib retracement). Any close above $24.30, a jump to $25/$26.  Minor support is $23.60/$23.

Crude oil-  

WTI crude continues to trade higher for the seventh consecutive day on supply disruptions in the Red Sea. Markets eye US crude oil inventories for further movement.

 Major resistance- $75/80. Significant support- $66.50/$63.