Ichimoku Analysis (4-hour Chart)
Tenken-Sen- $1816.58
Kijun-Sen- $1811.57
Gold traded in a narrow range between $1836 and $1807 for the past two days. The minor weakness in the US dollar supports the yellow metal at lower levels. US new home constructions slipped to 1.72M in Apr vs. forecast of 1.75M on rising rates. Markets eye Philly fed manufacturing index and existing home sales for further direction. It hits a low of $1807.75 and is currently trading around $1815.43.
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- Neutral (mixed for gold)
Technical:
The near–term support is around $1785, a breach below targets $1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1836 (23.6% fib), any breach above will take to the next level $1850/$1862/$1880.
It is good to sell on rallies around $1828-30 with SL around $1860 for TP of $1750/$1700.
