Ichimoku Analysis (4- hour Chart)
Tenken-Sen- $1782.15
Kijun-Sen- $1774.69
Gold price hits a five-week high amid a weak US dollar index and declining US treasury yield. The market awaits an update on the geopolitical tension between China and Taiwan.
US dollar index pared most of its gains made on Friday. The weak US economic data could dampen Fed's aggressive rate hikes.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 67.50% from 41% a week 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- Bearish (positive for gold)
Technical:
The near–term support is around $1780, a breach below targets $1760/$1750/$1740.Significant reversal only below $1650. The yellow metal faces minor resistance around $1800, breach above will take it to the next level of $1820/$1840.
It is good to buy on dips for around $1770 with SL at $1750 for TP of $1825.
