Gold -
Ichimoku Analysis (Daily chart)
Tenken-Sen- $2038.73
Kijun-Sen- $2030.84
Gold has consolidated in a narrow range between $2001 and $2039.48 for the past five days. The yellow metal has declined for the past two months after hitting an all-time high of $2146. the hawkish comments and upbeat US economic data are pushing the US dollar index higher. The yellow metal hit a high of $2037.90 and is currently trading around $2028.9.
According to the CME Fed watch tool, the probability of a no-rate cut in Jan increased to 97.40% from 94.80% a week ago.
US dollar index- Bullish. Minor support around 103/102.40 The near-term resistance is 103.75/104.50.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index - Bullish (Bearish for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $2015, a break below targets of $2000/$1970/$1956. The yellow metal faces minor resistance around $2050 and a breach above will take it to the next level of $2062/$2078.
It is good to buy on dips around 2015-16 with SL around $1998 for TP of $2065/$2080.
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Silver-
Silver forms a double bottom near $21.88 and shows a minor pullback. The diminishing hopes of an early rate cut put pressure on Silver at higher levels. The precious metal trades below 21 and 55- EMA and long-term MA (200- MA) in the weekly chart. Any break below $21.88 confirms a bearish continuation. A decline to $20.68/$19.90 is possible. It is facing immediate resistance around $22.50. Any break above targets $23/$23.55.
Crude oil-
WTI crude oil prices rose above $75 due to the escalation of Geopolitical tensions in the Middle East.
Major resistance- $75.5/80. Significant support- $70/$68


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