Ichimoku Analysis (4-hour Chart)
Tenken-Sen- $1669.76
Kijun-Sen- $1676.25
Gold trades flat ahead of Fed monetary policy. This week around 13 central banks are meeting, major central banks like the Fed, SNB, and BOE hike rates aggressively to tackle inflation putting pressure on the yellow metal. Markets eye Fed policy for further direction. The US dollar index remains strong but lacks momentum. The index should cross 110.80 for further bullishness.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 82% from 75% 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 $1650, a close below targets $1620/$1598.The yellow metal faces minor resistance around $1680, breach above will take it to the next level of $1720/$1735. Minor bullish continuation only if it breaks $1740.
It is good to sell below $1650 with SL around $1680 for TP of 1590.
