Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1908.25
Kijun-Sen- $1915.92
Gold showed a minor pullback despite mixed US economic data. It hit a low of $1901.04 and is currently trading around $1915.63.
US retail sales rose 0.60% in Aug mainly due to a surge in gas prices. Core retail sales came at 0.60% in August, above the forecast of 0.40%. US wholesale inflation +1.6% y/y vs. +1.2% expected.
US dollar index- Bullish. Minor support around 104.40/103.79. The near-term resistance is 105.50/106.
According to the CME Fed watch tool, the probability of a no-rate hike in Sep increased to 97% from 92% a week ago.
The US 10-year yield pared some of its despite strong US CPI. The US 10 and 2-year spread widened to -73% from -57%.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index - Bullish (negative for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1900, a break below targets of $1880/$1870/$1850. The yellow metal faces minor resistance around $1920 and a breach above will take it to the next level of $1930/$1950/.
It is good to sell on rallies around $1920-21 with SL around $1931 for TP of $1880/$1860.
