FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $2083.37

Kijun-Sen- $2083.37

Gold pared most of its gains on profit booking. It hit a low of $2020 and is currently trading around $2033.

The precious metal was among the best performers in the past month and hit an all-time high on rate cut expectations.

Major economic data for the day

 Dec 5th, 2023,  ISM services manufacturing PMI (3:00 pm GMT)

US dollar index-  Neutral. Minor support around 102/100. The near-term resistance is 104/105.

According to the CME Fed watch tool, the probability of a no-rate hike in Dec decreased to 97.50% from 99.70% a week ago.

 The US 10-year yield trades weak in rate cut hopes. The US 10 and 2-year spread narrowed to  -38% from -52%.

 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 $2020, a break below targets of $2000/$1970/$1950. The yellow metal faces minor resistance around $2050 and a breach above will take it to the next level of $2075/$2100/$2150.

 It is good to buy on dips around $2020 with SL around $2000 for a TP of $2150.