Ichimoku Analysis (4- hour chart)
Tenken-Sen- $1741.15
Kijun-Sen- $1754.45
Gold trades weak despite the weak US dollar. Markets slowed ahead of the Thanksgiving holiday tomorrow. Investors awaiting US Fed meeting minutes for further direction. The surge in COVID cases in China prevented the yellow metal from further sell-off.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Dec increased to 24.2% from 14.6% a week ago.
The US 10-year yield declined more than 2.5% after a minor pullback to 3.84%. The US 10 and 2-year spread widened to -76.5 basis points from -57 bpbs.
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 $1730, a break below targets of $1720/$1700/$1680. The yellow metal faces minor resistance around $1748, breach above will take it to the next level of $1755/$1761/$1775.Minor bullish continuation only if it breaks $1803.
It is good to sell on rallies around $1758-60 with SL around $1775 for TP of $1735/$1720.
