Ichimoku analysis (4-hour chart)
Tenken-Sen- $1814.45
Kijun-Sen- $1810.78
Gold surged sharply yesterday after Powell's dovish comments. US Fed chairman Powell said that the US economy was "still a way off" from the tapering bond purchase program. The US PPI m/m came at 1.0% in June, above the forecast of 0.5%. The inflation for the 12 months surged to 7.3% vs an estimate of 7.1%. The decline of more than 5% in US 10- year yield is supporting the yellow metal. It hits an intraday high of $1829.22 and is currently trading around $1826.45.
Technical:
It is facing strong support at $1790, violation below targets $1784/$1776/$1760. Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1826 (200- day MA), any daily close above will take the yellow metal to $1836/$1860 is possible.
It is good to buy on dips for around $1815 with SL around $1800 for the TP of $1860.
