Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1770.29
Kijun-Sen- $1769.24
The gold price rebounded after hitting a low of $1755 yesterday. The demand for safe-haven assets after US House Speaker Nancy Pelosi visits Taiwan. The minor downtick in US 10-year bond yield supports the yellow metal at lower levels. Market eyes BOE monetary policy today for further direction. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 40.50% from 29% a day ago.
US ISM services PMI rose to 56.7 in Jul compared to a forecast of 53.5.
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- Bullish (Negative for gold)
Technical:
The near–term support is around $1754, 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 $1750 with SL around $1735 for TP of $1800/$1820.
