Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1759.32
Kijun-Sen- $1773.32
Gold price continues to trade lower on the strong US dollar. The yellow metal breaks strong support at $1750 and holds below that level. US dollar index pared some of its gains after hitting a 20-year high. US ISM services PMI dropped to 55.3 in June compared to 55.9 the previous month and came in better than expected at 54.5. Markets eye US ADP employment and jobless claims data for further direction. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul rose to 93.9% from 87.3% a week ago. It hits a low of $1732 yesterday and is currently trading around $1744.37.
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 $1760, any breach above will take to the next level of $1780/$1800.
It is good to sell on rallies around $1750-52 with SL around $1770 for TP of $1700.
