FxWirePro- Buy Gold on dips
Ichimoku Analysis (4-Hour chart)
Gold remains under pressure due to the strong US dollar, and hits a seven-week low. The Personal consumption expenditure which is Federal Reserve preferred inflation report came at 6.3% year-on-year and 0.6% mom slightly below forecast. The subdued personal spending also dragged the US dollar index down from yesterday's high of 105.54. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul dropped to 84.4% from 93.3% a week ago. It hits a low of $1802.78 and is currently trading around $1804.69.
Factors to watch for gold price action-
Global stock market- Bearish (positive for gold)
US dollar index – Bearish (Positive for gold)
US10-year bond yield- Bearish (Positive for gold)
The near–term support is around $1800, a breach below targets $1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces minor resistance around $1821, any breach above will take to the next level $1842/$1850/$1875/$1900.
It is good to buy on dips around $1798-800 with SL around $1780 for TP of $1870.