Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1788
Kijun-Sen- $1794.50
Gold price showed a gap-down opening on US dollar strength. US dollar index breaks significant resistance at 105.78 and hits a 19-year high on recession fears. Markets eye US FOMC meeting minutes for further direction. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul declined to 86.8% from 87.3% a week ago. It hits a low of $1764 at the time of writing and is currently trading around $1766.79.
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- Bearish (positive for gold)
Technical:
The near–term support is around $1750, a breach below targets $1700/$1650. Significant reversal only below $1750. The yellow metal faces minor resistance around $1800, any breach above will take to the next level $1835/$1850/$1875.
It is good to sell on rallies around $1795-96 with SL around $1815 for TP of $1700.
