Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1955.67
Kijun-Sen- $1946.51
Gold prices trade flat after a minor pullback to $1968. The minor pullback in US treasury yields is putting pressure on the yellow metal at higher levels. It hits a high of $1967.95 and is currently trading around $1950.
Major central banks have hiked rates by 25 bpbs the previous week with a hawkish outlook dragging the gold price down. Markets have been pricing another 25 bpbs rate hike by Fed in the next month.
US dollar index- weak. Minor support around 102/101. The near-term resistance is 103/103.85.
According to the CME Fed watch tool, the probability of a 25 bpbs rate hike in July increased to 74.40% from 59.90% a week ago.
The US 10-year yield consolidating in a narrow range for the past four days. The US 10 and 2-year spread widened to -94% from -35%.
Factors to watch for gold price action-
Global stock market- bullish (negative for gold)
US dollar index - Bearish (positive for gold)
US10-year bond yield- Bullish (Bearish for gold)
Technical:
The near–term support is around $1935, a break below targets of $1925/$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 $1960-61 with SL around $1975 for TP of $1920/$1900.
