Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1947.53
Kijun-Sen- $1967.58
Gold under pressure after Fed Chairman speech. He signaled that the central bank is likely to raise rates by 50 bpbs next month and continues to hike further till inflation cools. The US treasury yields surged after hawkish Fed comments. The jump in coronavirus cases in China and further escalation of tension between Russia and Ukraine support the yellow metal at lower levels. It hits an intraday low of $1945 and is currently trading around $1949.58.
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 $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 $1960, any breach above will take to the next level $1975/$2000.
It is good to sell on rallies around $1978-79 with SL around $2000 for TP of $1890.
