Ichimoku analysis (4-hour chart)
Tenken-Sen- $1809
Kijun-Sen- $1793
Gold is holding above the $1800 level on inflationary concerns and weak US dollar. The US dollar index declined more than 50 pips from a high of 94.62 level. Markets eye US PPI and Fed chairman Powell speech for further direction. The minor sell-off in US treasury yields also supported the yellow metal. Gold hits a high of $1823.36 and is currently trading around $1823.45.
Factors to watch for gold price action-
Global stock market- Slightly bullish (negative for gold)
US dollar index –Bearish (positive for gold)
US10-year bond yield- Bearish (positive for gold)
Technical:
It faces strong support at $1800 violation below targets $1780/$1760/$1750$1740. Significant trend continuation only below $1675. The yellow metal is holding above $1815, a jump till $1835 is possible. The major bullish trend after it breaks $1835.
It is good to buy on dips around $1800 with SL around $1780 for TP of $1860.
