Ichimoku analysis (4-hours chart)
Tenken-Sen- $1789.39
Kijun-Sen- $1792.78
Gold showed a massive sell-off after hawkish Powell testimony. US Fed Chairman said that central bank will speed up tapering of asset purchase earlier than expected. The US dollar regained sharply above 96.50 and started to show a minor decline. The US 10-year yield declined to three –week low due to omicron fears. The yellow metal hits a low of $1771 yesterday and is currently trading around $1779.
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)
Technical:
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.
