Ichimoku Analysis (4-hour Chart)
Tenken-Sen- $1846
Kijun-Sen- $1862
Gold regained above $1850 after US CPI data. It cools off to 8.3% from March's 40-year high of 8.5%. The inflation is better than the forecast of 8.1%. The surge in the US dollar index and crude oil prices puts pressure on the yellow metal at higher levels. Markets eye US PPI data today for further direction. It hits an intraday high of $1858.85 and is currently trading around $1851.14.
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 $1830, a breach below targets $1800/$1750. Significant reversal only below $1750.The yellow metal faces strong resistance of $1870, any breach above will take to the next level $1900/$1920.
It is good to sell on rallies around $1854-55 with SL around $1885 for TP of $1750.
