Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1990.11
Kijun-Sen- $2015.80
Gold continues to trade lower for third consecutive days on rising US treasury yield. The yellow metal lost its shine in hopes of easing geopolitical tension between Russia and Ukraine. The peace talks between the two countries failed to make progress yesterday.US CPI came at 7.9% y/y vs 7.9% expected. Gold hits a low of $1971 and is currently trading around $1987.40.
Factors to watch for gold price action-
Global stock market- Bearish (positive for gold)
US dollar index –Bearish (positive for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1960, violation below targets $1925/$1900. Significant reversal only below $1875.The yellow metal faces strong resistance of $2020, any violation above will take to the next level $2050/$2075.
It is good to sell on rallies around $2020 with SL around $2050 for TP of $1900.
