Ichimoku Analysis (Weekly chart)
Tenken-Sen- $1720.62
Kijun-Sen- $1731.42
Gold showed a minor pullback despite a rate hike by central banks.US fed, ECB, SNB, and Bank of England hiked rates by 50 bpbs. The yellow metal hits a high of $1824.50 and is currently trading around $1791.
US consumer prices jumped 7.1% YoY, slightly below the estimate of 7.3%. Core CPI month-on-month basis came at 0.10% vs forecast of 0.30%. The drop in inflation will decrease the chance of aggressive rate hikes by the Fed.
US dollar index- Bearish. Minor resistance around 105.50/106.25. The near-term support is at 103.50.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Dec rose to 73.40% from 40.6% a week ago.
The US 10-year yield pared some of its gains made the previous week. The US 10 and 2-year spread narrowed to -67 basis points from -85 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 $1760, a break below targets of $1740$1720/$1700. The yellow metal faces minor resistance around $1820, breach above will take it to the next level of $1860/$1900.
It is good to buy on dips around $1780 with SL around $1760 for TP of $1860.


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