Ichimoku Analysis (4-hours chart)
Tenken-Sen- $1856.11
Kijun-Sen- $1851.38
Gold hits one week high as the US dollar slumps after mixed economic data. The private US payrolls came to 128K in May, compared to a forecast of 295K. The number of people who have filed for unemployment benefits dropped to 200K last week vs. an estimate of 210K. 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- 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 $1850, a breach below targets $1828/$1819/$1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $18750, any breach above will take to the next level $1880/$1900/$1920.
It is good to buy on dips around $1850-52 with SL around $1828 for TP of $1918.
