FxWirePro- Sell Gold on rallies
Ichimoku analysis (4-hours chart)
Gold has declined after a minor pullback to $1794.64.The yellow metal upside is capped as Fed members are open to faster tapering. US dollar index is trading in a narrow range between 96.64 and 95.67 in the past two days. The mild safe-haven demand increased after the US detected the first Omicron virus case. The yellow metal hits a low of $1776 yesterday and is currently trading around $1777.
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- Bearish (positive for gold)
It faces strong support at $1770, violation below targets $1760/$1740/$1700.Significant trend continuation only below $1675. The yellow metal facing strong resistance $1782, any violation above will take to the next level $1800/$1815/$1835/$1860/$1900 is possible.
It is good to sell on rallies around $1800-01 with SL around $1815 for TP of $1765.