Ichimoku Analysis (4- Hour chart)
Tenken-Sen- $1762.55
Kijun-Sen- $1759.88
Gold surged more than $30 after the Fed chairman's speech. He said that Fed could slow the pace of rate hikes in December and it has a "long way to go" in bringing inflation down.US dollar index pared most of its gains made yesterday.
US dollar index- Bearish. Minor resistance around 106.20/107.25. The near-term support is at 105.
US private sector employment has added 127000 in Nov compared to a forecast of 196K. Markets eye the US Core PCE index and US ISM manufacturing index for further direction.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Dec dropped to 21.8% from 33.7% a day ago.
The US 10-year yield lost more than 5% after less hawkish Fed chairman comments.The US 10 and 2-year spread narrowed to -72 basis points from -80 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.


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