Ichimoku Analysis (4-hours chart)
Tenken-Sen- $1852.29
Kijun-Sen- $1848.71
Gold holds above $1850 after a minor dip to $1840 on the weak US dollar. It hits fresh monthly lows on dismal economic data would dampen rate hike expectations. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Jul jumped to 89.4% from 86.2% a week ago.
The number of people who have filed for unemployment benefits dropped by 8000 to 21000 the previous week compared to a forecast of 217000. US economy shrank by 1.5% in Q1 vs -1.4% previous quarter.
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 $1840, 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 $1828-30 with SL around $1820 for TP of $1900/$1920.
