Ichimoku Analysis (4- Hour chart)
Tenken-Sen- $1900.67
Kijun-Sen- $1905.33
Gold breaks psychological support at $1900 on the strong US dollar. US FOMC meeting minutes indicate that the central bank to hike rates to tackle inflation. It hit a low of $1891.50 yesterday and is currently trading around $1893.75.
US housing starts rose 3.9% in Jul, Building permits edged up 0.40%.
Major economic data for the day
Aug 17th, 2023, US Unemployment claims (12:30 pm GMT)
Philly Fed manufacturing index
US dollar index- Bullish. Minor support around 102/101. The near-term resistance is 103.50/105.
According to the CME Fed watch tool, the probability of a no-rate hike in Sep decreased to 86.5% from 89% a week ago.
The US 10-year yield hits multi-week on hawkish FOMC meeting minutes. The US 10 and 2-year spread narrowed to -70% from -110%.
Factors to watch for gold price action-
Global stock market- bullish (negative for gold)
US dollar index - Bullish (bearish for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1890, a break below targets of $1847/$1820. The yellow metal faces minor resistance around $1920 and a breach above will take it to the next level of $942/$1950.
It is good to buy on dips around $1890 with SL around $1870 for TP of $1950.
