Ichimoku Analysis (4-Hour Chart)
Tenken-Sen- $1738.30
Kijun-Sen- $1742.97
Gold price showed a minor pullback on US dollar weakness. US dollar index pared some of its gains after hitting a multi-year high on profit booking. The overall trend of the precious metal is still bearish on hawkish Fed chairman Powell's speech and surging US bond yields.
Markets eye US CB Consumer confidence and JOLTS job opening for further direction.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 70.5% from 55% 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 $1748-50 with SL at around $1771 for TP of $1700/$1650.
