Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1766.35
Kijun-Sen- $1746.05
The gold price gained more than $15 after the US ISM manufacturing PMI report. It came at 52.8% in July, the lowest reading since June 2020. US dollar index hits a fresh three-week low at 105.24 yesterday. Sell-off in US treasury yields also supported the yellow metal at lower levels. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Sep rose to 79.5% from 72.5% a week ago.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index – Bearish (Negative for gold)
US10-year bond yield- Bearish (Negative for gold)
Technical:
The near–term support is around $1760, a breach below targets $1742/$1720/$1680.Significant reversal only below $1600. The yellow metal faces minor resistance around $1780, breach above will take it to the next level of $1790/$1803/$1820.
It is good to buy on dips for around $1760 with SL around $1740 for TP of $1800/$1820.
