FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4-hours chart)
Gold holds above $1850 on extreme weakness in the US dollar. It has lost more than 2.5% after hitting a 19-year high at 105. The surge in equities came after Biden said he is weighing reducing tariffs on China puts pressure on the yellow metal at higher levels. It hits a high of $1857.15 and is currently trading around $1856.30.According to the CME Fed watch tool, the probability of a 50 bpbs rate hike dropped to 88.8% from 94.9% a day ago.
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 $1830, a breach below targets $1820/$1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1862, any breach above will take to the next level $1880/$1900/$1920.
It is good to buy on dips around $1825-26 with SL around $1800 for TP of $1885.