Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1948.93
Kijun-Sen- $1968.88
Gold continues to trade lower despite minor profit booking in US treasury yields. The precious metal kept calm after US housing data. Existing home sales declined for a second consecutive month to a seasonally adjusted annual rate of 5..77 million. Markets eye US Fed chairman Powell's speech today for further direction. The increase of coronavirus in China and The yellow metal hits an intraday low of $1950 and is currently trading around $1951.71.
Factors to watch for gold price action-
Global stock market- bullish (Negative 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.
