Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1846.40
Kijun-Sen- $1834.03
Gold pared some of its gains after Fed meeting minutes. The minutes from Dec 13-14 showed that participants agreed that inflation was high and central bank should continue increasing rates at a slower pace to tackle inflation. No participants are willing to lower interest rates in 2023. It hits a high of $1850 and is currently trading around $1846.55.
US dollar index- Neutral. Minor support around 103.40/102. The near-term resistance is at 105/106.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Feb rose to 69.1% from 67.8% a week ago.
The US 10-year yield trading weak for the second consecutive day despite hawkish Fed minutes. The yield spread between 10 and 2-year widened to -67.7 basis points from -46.9 bpbs.
Factors to watch for gold price action-
Global stock market- weak (bullish for gold)
US dollar index – Mixed (Neutral for gold)
US10-year bond yield- Bullish (Negative for gold)
Technical:
The near–term support is around $1825, a break below targets of $1807/$1780/$1760.The yellow metal faces minor resistance around $1850, and a breach above will take it to the next level of $1860 /$1900.
It is good to buy on dips around $1800 with SL around $1775 for TP of $1850.
