Ichimoku analysis (4-hours chart)
Tenken-Sen- $1799.13
Kijun-Sen- $1783.45
Gold is trading below $1800 on monetary policy tightening. The rate hike expectation by the Fed and 0.015% interest rate hike by the Bank of England is weighing on the yellow metal. It hits an intraday low of $1789.35 and is currently trading around $1791.25.
The US dollar index declined slightly from a high of 96.69 despite Omicron concerns and rosining US treasury yields. Any breach above 97 confirms further bullishness.
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:
It faces strong support at $1780, violation below targets $1770/$1750/$1740/$1700.Significant trend continuation only below $1675. The yellow metal facing strong resistance $1815, any violation above will take to the next level $1835/$1860/$1900 is possible.
It is good to sell on rallies around $1801-02 with SL around $1815 for TP of $1760.
