Ichimoku Analysis (4 hour chart)
Tenken-Sen- $2031.60
Kijun-Sen- $2078.26
Gold trades weak ahead of US ADP employment data. It hit a low of $2009 and is currently trading around $2022.26.
US ISM services PMI rose to 52.70 in November, compared to a forecast of 52.
Major economic data for the day
Dec 6th, 2023, ADP employment change (1:15 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 increased to 99.70% from 99% a day ago.
The US 10-year yield trades weak despite strong US ISM services PMI. The US 10 and 2-year spread widened to -41% from -14.50%.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index - Mixed (neutral 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 sell on rallies around $2050 with SL around $2065 for TP of $2000.
