Ichimoku analysis (4- hour chart)
Tenken-Sen- $1749.97
Kijun-Sen- $1721.93
Gold is holding above $1750 on upbeat US Producer prices. The US wholesale inflation surged for a sixth consecutive month. It came at 1% last month compared to a forecast of 0.6%. the number of people who have filed for unemployment benefits dropped by 12000 to 375000 for Aug ended Aug 7th. The US 10-year bond yield has shown a minor pullback of more than 5%. The dollar index is trading in a narrow range between 93.20 and 91.78 for the past three weeks. Any breach above 93.20 targets 93.60/94.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index – Slightly Bearish (Positive for gold)
US10-year bond yield- Mixed (neutral for gold)
Technical:
It is facing strong support at $1675 violation below confirms that the minor top has formed at $1916. A dip till $1600/$1550 is possible. On the higher side, near-term resistance is around $1760 and a convincing break above will take the yellow metal $1770/$1785/$1800 is possible.
It is good to sell on rallies around $1758-60 with SL around $1770 for TP of $1675.
