FxWirePro- Commodity Daily Update

Gold -

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $2029.78

Kijun-Sen- $2029.78

Gold showed a nice pullback despite strong US CPI data. US headline CPI  rose to 3.4% YoY, compared to a forecast of 3.2%. Annual core CPI increased 3.9%  from 4% in November. It hit a low of $2013.39 and is currently trading around $2040.55.

 According to the CME Fed watch tool, the probability of a no-rate cut in  Jan increased to 95.3% from 93.80% a week ago.
                                                                            
  US dollar index-   Neutral. Minor support around 101.80/100.60 The near-term resistance is 103/104.
  
 Factors to watch for gold price action-
     
   Global stock market- Bullish  (negative for gold)

  US dollar index - neutral (mixed  for gold)

  US10-year bond yield- Bearish (Positive for gold)

Technical:
The near–term support is around $2035, a break below targets of $2024/$2010/$2000. The yellow metal faces minor resistance around $2050 and a breach above will take it to the next level of$2060/$2070/ $2090/$2100/$2150.

 It is good to buy on dips around $2030 with SL around $2010 for TP of $2150.
 

Silver-
Silver showed a false break out below $22.50 and jumped more than 2% following the footsteps of Gold. The precious metal trades below 21 and 55- EMA and long-term MA (200- MA) in the 4-hour chart.  Any break above $23.20 (200-4H EMA) confirms minor bullishness. A jump to $23.60/$24/$24.50. It is facing significant support at $22.50 Any close below $22.50 targets $21.80/$21.  
 

Crude oil-  
WTI crude oil prices gained sharply on Middle East tension escalation. According to Bloomberg reports, $110/$130 call option spreads of about 30 million barrels worth of Brent Crude oil have traded in recent days.

 Major resistance- $75.35/80. Significant support- $71/$68.