Ichimoku Analysis (4-hour Chart)
Tenken-Sen- $1701.16
Kijun-Sen- $1714.45
Gold continues to trade lower on surging US treasury yields. US PPI for August declined by -0.1% in line with expectations. The core producer price index jumped 0.40% vs the estimate of 0.30%. Markets eye US retail sales and empire state manufacturing index for further direction. The overall trend is still bullish as long as support of $1680 holds.
According to the CME Fed watch tool, the probability of a 100 bpbs rate hike in Sep rose to 30% from 0% 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 $1680, 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 buy on dips around $1678-80 with SL at around $1650 for TP of $1750/$1775.
