Ichimoku Analysis (4-Hour Chart)
Tenken-Sen- $1706.20
Kijun-Sen- $1717.50
Gold price is trading weak as the US dollar rally. Markets eye US Non-farm payroll data for further direction. The US economy is expected to add 30000 jobs below 528000 in July. Any dismal data will push the yellow metal higher.
US ISM manufacturing PMI came at 52.80 in Aug vs expectations of 52. The number of people who have filed for unemployment benefits has dropped to 23200 compared to an estimate of 252K.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 74% from 64% 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 $1690, a close below targets $1671/$1650/$1600. Significant reversal only below $1650. The yellow metal faces minor resistance around $1720, breach above will take it to the next level of $1740/$1760/$1775/$1800/$1820.
It is good to sell on rallies around $1728-30 with SL at around $1750 for TP of $1650.
