Ichimoku Analysis (4-hours chart)
Tenken-Sen- $1846.30
Kijun-Sen- $1848.77
Gold lost its shine due to a minor pullback in the US dollar. The US dollar index gained above 102 and pared most of its gains made yesterday. The surge in crude oil prices after the EU imposed new sanctions on Russia also puts pressure on the yellow metal. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Jun jumped to 97.7% from 93.3% a week ago.
US Conference Board consumer confidence dropped to 10
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index –Bearish (positive for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1830, a breach below targets $1819/$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 sell on rallies around $1838-39 with SL around $1860 for TP of $1788.
