Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1846.32
Kijun-Sen- $1855.61
Gold price consolidates in a narrow range between $1840.77 and $1855.61 over the past two days. The minor weakness in the US dollar index and bond yields supporting the yellow metal at lower levels. Markets eye US CPI data to be released on Friday for further direction. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Jul increased to 88.6% from 85.1 % a day ago. It hits a low of $1837 yesterday and is currently trading around $1842.14.
Factors to watch for gold price action-
Global stock market- Mixed (neutral 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 $1820/$1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1875, any breach above will take to the next level $1880/$1900/$1920.
It is good to sell on rallies around $1849-50 with SL around $1870 for TP of $1800/$1787.
