Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1838.47
Kijun-Sen- $1833.27
Gold prices trade flat ahead of FOMC meeting minutes. Any hawkish comments from Fed chairman Powell will drag the yellow metal further lower. It hits a low of $1831.19 and is currently trading around $1836.77.
Major economic data:
US flash services PMI surged to 50.2 in Feb, the highest level in 8 months, up from 46.8 in Jan.
US Flash manufacturing PMI came at 47.8 in Feb, slightly above the estimate of 47.40.
US dollar index-Neutral. Minor support around 102.50/101.50. The near-term resistance is 104.90/106.
According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar jumped to 21% from 18.1% a week ago.
The US 10-year yield hits a multi-week high ahead of FOMC meeting minutes. The US 10 and 2-year spread narrowed to -73.30 basis points from -88% bpbs.
Factors to watch for gold price action-
Global stock market- bullish (negative for gold)
US dollar index - Mixed (Neutral for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1816 (21-W EMA), a break below targets of $1800/$1788/$1748. The yellow metal faces minor resistance around $1850, and a breach above will take it to the next level of $1900/$1925/$1950.
It is good to sell on rallies around $1848-51 with SL around $1871 for TP of $1800.
