Ichimoku Analysis (4 hour chart)
Tenken-Sen- $1999.80
Kijun-Sen- $1987.45
Gold surged more than $30 on the weak US dollar and dovish Fed remarks. It hit a high of $2052.04 yesterday and is currently trading around $2044.05.
Federal Reserve Governor Waller said that inflation to fall in Q4 and it has increased the chance of a rate cut by the Fed.
US CB consumer confidence rose to 102 in Nov, compared to a forecast of 101. Richmond manufacturing activity slowed in Nov to -5 vs. Estimate 1.
Major economic data for the day
Nov 29th 2023, US prelim GDP q/q (1:30 pm GMT)
US dollar index- Bearish. Minor support around 102/100. The near-term resistance is 103/104.50.
According to the CME Fed watch tool, the probability of a no-rate hike in Dec increased to 96.10% from 99.80 % a day ago.
The US 10-year yield lost more than 2.5% from a minor top of 4.50%. The US 10 and 2-year spread widened to -46.7% 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 $2000, a break below targets of $1980/$1965/$1950/$1929/$1900/$1850. The yellow metal faces minor resistance around $2020 and a breach above will take it to the next level of $2030/$2050.
It is good to buy on dips around $2020 with SL around $2000 for TP of $2070.
