Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1713
Kijun-Sen- $1721.57
Gold price declined after a minor pullback to $1723.50. The yellow metal trades weak for a fourth consecutive month and lost more than $200 in hopes of aggressive rate hikes by the Fed. US dollar index pared some of its gains made the previous week as the fed chance of a 100 bpbs rate hike in the Jul meeting diminished. According to the CME Fed watch tool, the probability of a 100 bpbs rate hike in Jul rose to 30.9% from 29.1% a day ago.
Factors to watch for gold price action:
Global stock market- mixed (neutral for gold)
US dollar index – Bearish (Positive for gold)
US10-year bond yield- Mixed (neutral for gold)
Technical:
The near–term support is around $1700, a breach below targets $1650/$1600. Significant reversal only below $1600. The yellow metal faces minor resistance around $1720, any breach above will take it to the next level of $1732/$1745/$1770.
It is good to sell on rallies around $1728-30 with SL around $1760 for TP of $1650.
