Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1964
Kijun-Sen- $1969
Gold trades lower for the second consecutive day and lost more than $50. Deep correction in Crude oil price and surging US 10-year bond yields puts pressure on yellow metal at higher levels. Risk aversion in the global markets due to the escalation of Russia and Ukraine tension. Russia's invasion of Ukraine supports the yellow metal at lower levels. . The yellow metal hits an intraday low of $1973 and is currently trading around $1974.35.
Factors to watch for gold price action-
Global stock market- Flat (Neutral for gold)
US dollar index –Bullish (negative for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1938, violation below targets $1919/$1900. Significant reversal only below $1890. A dip to $1850/$1800 is possible. The yellow metal faces strong resistance of $2000, any breach above will take to the next level $2020/$2050.
It is good to sell on rallies around $1978-79 with SL around $2000 for TP of $1890.
