Ichimoku Analysis (4-Hour Chart)
Tenken-Sen- $1765.26
Kijun-Sen- $1744.43
Gold price correcting from minor top $1802.57 on strong US dollar. It has pared some of its gains ahead of US durable goods orders and the Fed chairman's speech at Jackson hole. Any close above 109.30 confirms further bullishness.
US Flash services and manufacturing PMI dropped to 44.1 and 51.3, well below expectations. US new home sales slumped to a 6-1/2 year low to 511K compared to an estimated 574K. US Richmond manufacturing slowed down to -8 vs forecast of -4.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 50% from 41% a week ago.
Factors to watch for gold price action-
Global stock market- Bearish (Positive for gold)
US dollar index – Bullish (Negative for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1720, a breach below targets $1700/$1650. Significant reversal only below $1650. The yellow metal faces minor resistance around $1760, breach above will take it to the next level of $1775/$1800/$1820.
It is good to sell on rallies around $1760-61 with SL at around $1781 for TP of $1700.
