Ichimoku Analysis (4-hours chart)
Tenken-Sen- $1839.97
Kijun-Sen- $1846.34
Gold hits a ten-day low at $1828 on US dollar recovery. The US dollar index regained above 102 after upbeat US ISM manufacturing data. It rose to 56.1 in May compared to a forecast of 54.40. The rise in US 10-year bond yields also puts pressure on yellow metal at higher levels. Markets eye US ADP employment and initial jobless claims for further direction. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Jun jumped to 99.30% from 93.3% a week ago.
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 $1828, 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.
