Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1874.36
Kijun-Sen- $1853.38
Gold recovered after Fed Chairman's Speech. "The case for monetary policy independence lies in the benefits of insulating monetary policy decisions from short-term political considerations," he said. Gold hits an intraday high of $1884.68 and is currently trading around $1882.71.
US dollar index- Bearish. Minor support around 102.80/102. The near-term resistance is at 103.40/104.10.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in Feb rose to 79.2% from 69.7% a week ago.
The US 10-year yield showed a minor pullback of 3.5% and trades above 3.60%. Any break and close above 3.69% confirms minor bullishness. The yield spread between 10 and 2-year narrowed to -64.2 basis points from -77 bpbs.
Factors to watch for gold price action-
Global stock market- bullish (bearish for gold)
US dollar index – Bearish (positive for gold)
US10-year bond yield- Bearish (Positive for gold)
Technical:
The near–term support is around $1865, a break below targets of $1850/$1840/$1825.The yellow metal faces minor resistance around $1885, and a breach above will take it to the next level of $1909/$1920.
It is good to buy on dips around $1848 with SL around $1825 for TP of $1919.
