Ichimoku Analysis (4-hour chart)
Tenken-Sen- $2022.95
Kijun-Sen- $2078.26
Gold showed a minor pullback after weak US ADP data. It hit a high of $2032 and is currently trading around $2028.24.
US private sector employment increased by 103000 jobs in Nov, below expectations of 131000.
Major economic data for the day
Dec 7th, 2023, US initial jobless claims (1:30 pm GMT)
US dollar index- Neutral. Minor support around 102/100. The near-term resistance is 104.40/105.
According to the CME Fed watch tool, the probability of a no-rate hike in Dec increased to 97.50% from 97% a week ago.
The US 10-year yield trades weak amid weak US private sector employment. The US 10 and 2-year spread widened to -47.6% 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 buy on dips around $2020 with SL around $2000 for TP of $2150.
