Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1955.15
Kijun-Sen- $1954.35
Gold prices trading in a narrow range between $1938.40 and $1970.25 for the past four days. The minor sell-off in the US dollar and US treasury yield supports the yellow metal at a lower level. It hits a low of $1970.50 yesterday and is currently trading around $1963.28.
US dollar index- Neutral. Minor support around 103.20/102.80. The near-term resistance is 103.85/104.40.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in June decreased to 25.2% from 27.5% a day ago.
The US 10-year yield pared some of its gains on profit booking. The US 10 and 2-year spread widened to -71.10% from -79%.
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 (Bearish for gold)
Technical:
The near–term support is around $1935, a break below targets of $1920/$1900.The yellow metal faces minor resistance around $1965, and a breach above will take it to the next level of $1980/$2000/$2020/$2040/$2070/$2100/$2150.
It is good to sell on rallies around $1970 with SL around $1980 for TP of $1920/$1900.
