Ichimoku Analysis (4- Hour chart)
Tenken-Sen- $1751.75
Kijun-Sen- $1747.95
Gold showed a minor decline yesterday as the US dollar index rallied more than 100 pips. The unrest in China is putting pressure on metals as demand might decline. Markets eye US CB consumer confidence for further direction.
Fed reserve member St Louis President James Bullard in an interview said that "the Federal Reserve will likely need to keep its benchmark policy rate north of 5% for most of 2023 and into 2024 to succeed in taming inflation."
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Dec increased to 32.5% from 19.4% a week ago.
The US 10-year yield recovered more than 2.5% after hitting a 2-week low. The US 10 and 2-year spread widened to -75 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 $1760, breach above will take it to the next level of $1785/$1800.Minor bullish continuation only if it breaks $1803.
It is good to buy on dips around $1748-50 with SL around $1730 for TP of $1800.
