Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1923.80
Kijun-Sen- $1923.07
Gold trades in a narrow range between $1930.79 and $1915.34 for the past four days. It hit an intraday low of $1920.41 and is currently trading around $1923.54.
Markets await US economic data, CPI for Aug to be released tomorrow for further direction.
US dollar index- Neutral. Minor support around 104.40/103.79. The near-term resistance is 105/106.
According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 93% from 94% a week ago.
The US 10-year yield trades flat after a minor pullback of more than 2%. The US 10 and 2-year spread narrowed to -69.4% from -74.5%.
Factors to watch for gold price action-
Global stock market- mixed (neutral for gold)
US dollar index - Bullish (negative for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1915, a break below targets of $1900/$1880. The yellow metal faces minor resistance around $1930 and a breach above will take it to the next level of $1950/$1970/$2000.
It is good to sell on rallies around $1935-36 with SL around $1951 for TP of $1885.


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