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FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour)

 

Tenken-Sen- $1968

 

Kijun-Sen- $2002

 

Gold continues to trade lower and hits fresh one week low on de-escalation of tension between Russia and Ukraine. Markets already priced in 25 bpbs rate hike by Fed.  Any hawkish commentary from Fed will drag the yellow metal further down. Gold hits a low of $1939.25 at the time of writing and is currently trading around $1940.66.

 

Factors to watch for gold price action-

 

 Global stock market- Bearish (positive  for gold)

 

US dollar index –Bullish (negative for gold)

 

US10-year bond yield- Bullish (negative for gold)

 

Technical:

The near–term support is around $1936, violation below targets $1925/$1900. Significant reversal only below $1875.The yellow metal faces strong resistance of $1960, any violation above will take to the next level $1977/$2000/$2020.

 

It is good to sell on rallies around $1949- 50 with SL around $1965 for TP of $1900.   

 

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