Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1884.45
Kijun-Sen- $1862
Gold prices surged above $1900 on US banks turmoil. The collapse of Silicon valley banks and the signature bank has increased the demand for safe-haven assets like gold and yen. Gold hit a high of $1914.50 and is currently trading around $1903.
Major economic data for the day
Mar 14th, 2023 US CPI m/m (12:30 pm GMT)
US dollar index-Bearish. Minor support around 103.70/102.50. The near-term resistance is 104.30/105.
According to the CME Fed watch tool, the probability of a no-rate hike in Mar increased to 24% from 0% a day ago.
The US 2-year yield declined drastically on Friday following the shutdown of SVB bank. The US 10 and 2-year spread narrowed to 71.4% from -107%.
Factors to watch for gold price action-
Global stock market- bearish (Positive for gold)
US dollar index - Bearish (positive for gold)
US10-year bond yield- Bearish (positive for gold)
Technical:
The near–term support is around $1880, a break below targets of $1860/$1840.The yellow metal faces minor resistance around $1920 and a breach above will take it to the next level of $1959/$2000.
It is good to buy on dips around $1870 with SL around $1850 for TP of $1920/$1959.
