Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1720.98
Kijun-Sen- $1710.15
Gold price trades flat ahead of Fed monetary policy. Markets anticipate a 75 bpbs rate hike and any surprise of a 100 basis point hike will drag the yellow metal further down. The decline US 10-year yield by more than 6.5% the previous week supported the yellow metal at lower levels. US dollar index pared most of its gains after hitting a multi-year high of 109.29. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul jumped75.1% from 63.8% a week ago.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index – Bullish (Negative for gold)
US10-year bond yield- Bearish (Positive for gold)
Technical:
The near–term support is around $1680, a breach below targets $1650/$1600.Significant reversal only below $1600. The yellow metal faces minor resistance around $1740, breach above will take it to the next level of $$1760/$1770/$1800.
It is good to sell on rallies around $1728-30 with SL around $1750 for TP of $1650/$1600.
