Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1958.75
Kijun-Sen- $1956.45
Gold prices trading flat ahead of US CPI. The strong US dollar, weak crude oil price, and a rise in US treasury yields are putting pressure on the yellow metal at higher prices. Any upbeat US inflation data will drag gold prices further down. It hits an intraday high of $1962.50 and is currently trading around $1960.84.
US dollar index- Neutral. Minor support around 103.20/102.80. The near-term resistance is 103.85/104.40.
Major economic data for the week
Jun 13th, US CPI (12:30 PM)
According to the CME Fed watch tool, the probability of a no-rate hike in June increased to 81.50% from 75.90% a week ago.
The US 10-year yield is trading flat ahead of the US CPI. The US 10 and 2-year spread widened to -86% from -35%.
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.
