Ichimoku Analysis (4-Hour Chart)
Tenken-Sen- $1754.73
Kijun-Sen- $1746.68
Gold price declined slightly after hitting a high of $1765. US dollar index formed a double bottom around 108 and showed a minor pullback ahead Jackson hole symposium. Any hawkish comments from Powell will drag the yellow metal further down.
US GDP contracts 0.6% in Q2, annualized less than the forecast of 0.90%. The number of people who have filed for unemployment benefits dropped by 2000 last week to 243000 vs an estimate of 250K.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 60.50% 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.
