Ichimoku Analysis (4-hour Chart)
Tenken-Sen- $1834.86
Kijun-Sen- $1848.38
Gold showed a dead cat bounce after hitting a fresh three-month low at $1810. US dollar gained despite weak PPI data. US Producer price cools off to 11% in Apr over the past year compared to a previous month of 11.5% on declining crude oil prices. It hits an intraday high of $1827.62 and is currently trading around $1827.17.
The number of people who have filed for unemployment benefits rose by 1000 last week to 203000 compared to a forecast of 190000.
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 $1800, a breach below targets $1750. Significant reversal only below $1750.The yellow metal faces strong resistance of $1836, any breach above will take to the next level $1850/$1862/$1880.
It is good to sell on rallies around $1838-40 with SL around $1860 for TP of $1750.
