FxWirePro- Gold Daily Outlook

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.