Ichimoku Analysis (4 hour chart)
Tenken-Sen- $1965.39
Kijun-Sen- $1953.50
Gold pared some of its gains despite weak US PPI. It hit a high of $1975.28 and is currently trading around $1962.23.
US PPI rose 1.3% YoY in Oct, compared to a forecast of 2.2%. The annual core PPI surged 2.4% in Oct vs. Forecast of 2.70%. US retail sales dropped 0.10% in Oct from the previous month's 0.90%. Empire State manufacturing index improved to 9.1 in Nov from -4.2 in Oct.
Major Economic Data for the Day
Nov 16th, 2023, US Initial jobless claims (1:30 pm GMT)
Philly Fed Manufacturing Index
US dollar index- Neutral. Minor support around 104/103. The near-term resistance is 106.25/107.50.
According to the CME Fed watch tool, the probability of a no-rate hike in increased to 100% from 90.2% a week ago.
The US 10-year yield showed a minor pullback on weak US PPI. The US 10 and 2-year spread widened to -39.5% from -16%.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index - Weak (positive for gold)
US10-year bond yield- Bearish (Positive for gold)
Technical:
The near–term support is around $1950, a break below targets of $1929/$1900/$1850. The yellow metal faces minor resistance around $1975 and a breach above will take it to the next level of $1990/$2000.
It is good to buy on dips around $1950 with SL around $1938 for TP of $2000/$2009.
