Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1920.64
Kijun-Sen- $1926.28
Gold regained sharply above $1900 on geopolitical tension. Russia's invasion of Ukraine continued for the seventh consecutive day and a huge Russian 40-mile convoy heading to Kyiv. It has increased demand for safe-haven assets like Gold. The bearish US treasury yield supports yellow metal at lower levels. The jump in the US dollar index weighed on yellow metal prices. Gold hits a high of $1950 yesterday and is currently trading around $1906.
The US manufacturing rose to 58.6 in Feb compared to a forecast of 58. Markets eye US Fed Chairman Powell testimony and ADP employment data for further direction
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:
The near–term support is around $1878, violation below targets $1857/$1838. Significant reversal only below $1750.The yellow metal faces strong resistance of $1952, any violation above will take to the next level $1960/$1980.
It is good to buy on dips for $1900 with SL around $1880 for TP of $1960.
