Ichimoku Analysis (4-hours chart)
Tenken-Sen- $1828.37
Kijun-Sen- $1884.50
Gold trades higher for the third consecutive day on a weak US dollar. Markets await US Fed meeting minutes for further direction. US flash manufacturing PMI dropped to 57.5 in May compared to an estimate of 57.50. It hits a high of $1869.50 and is currently trading around $1862.50.According to the CME Fed watch tool, the probability of a 50 bpbs rate hike dropped to 89.80% from 92.30% a day ago.
Factors to watch for gold price action-
Global stock market- bearish (positive for gold)
US dollar index –Bearish (positive for gold)
US10-year bond yield- Bearish (positive for gold)
Technical:
The near–term support is around $1845, a breach below targets $1830/$1820/$1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1870, any breach above will take to the next level $1880/$1900/$1920.
It is good to buy on dips around $1850 with SL around $1830 for TP of $1900/$1920.
