Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1835.19
Kijun-Sen- $1835.71
Gold price lost its shine and lost nearly $20 on the strong US dollar. Markets eye the US Fed Chairman's speech for further direction. The US existing home sales dropped to a seasonally adjusted annualized rate of 5.41 million compared to a forecast of 5.6 million. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul increased to 96.9% from 88..5% a week ago. It hits an intraday low of $1825 and is currently trading around $1828.64.
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 $1825, a breach below targets $1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces minor resistance around $1850, any breach above will take to the next level $1875/$1900/$1920.
It is good to sell on rallies around $1838-40 with SL around $18750 for TP of $1800/$1787.
