Ichimoku Analysis (4-hour Chart)
Tenken-Sen- $1705.49
Kijun-Sen- $1709.12
Gold bounced back above $1700 on a minor sell-off in US dollar and treasury yields. Chinese exports dropped to 7.1% in Aug compared to a forecast of 12.8%. China's trade surplus with the US shrank to $36.77 billion from $41.50 billion. Global recession fears have increased demand for safe-haven assets like Gold. Markets eye US Fed chairman speech for further direction.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 76% from 69% a week ago.
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 $1690, a close below targets $1671/$1650/$1600. Significant reversal only below $1650. The yellow metal faces minor resistance around $1720, breach above will take it to the next level of $1740/$1760/$1775/$1800/$1820.
It is good to buy on dips around $1678-80 with SL at around $1650 for TP of $1750/$1775.
