Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1921.75
Kijun-Sen- $1930.83
Gold showed a minor pullback despite strong US job data. It hit a high of $1927.27 yesterday and is currently trading around $1925.04.
The number of people who have filed for unemployment benefits has dropped by 13000 to 216000 in the week ended Sep 2, compared to a forecast of 232000.
US dollar index- Bullish. Minor support around 103/102. The near-term resistance is 105/106.
According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 93% from 88% a week ago.
The US 10-year yield showed a minor sell-off despite upbeat US jobless claims. The US 10 and 2-year spread narrowed to -70% from -74%.
Factors to watch for gold price action-
Global stock market- mixed (neutral for gold)
US dollar index - Bullish (negative for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1924, a break below targets of$1911/$1900. The yellow metal faces minor resistance around $1950 and a breach above will take it to the next level of $1970/$2000.
It is good to sell on rallies around $1935-36 with SL around $1951 for TP of $1885.
