Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1930.15
Kijun-Sen- $1919.24
Gold showed a minor sell-off ahead of US Fed monetary policy. It hit a low of $1928.50 and is currently trading around $1930.32.
US Fed expected to keep rates unchanged at current levels. Any dovish comments from Fed Markets will push gold prices higher.
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 99% from 92% a week ago.
The US 10-year yield jumped more than 3.5% ahead of Fed monetary policy. The US 10 and 2-year spread widened to -72.70% 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- Mixed(neutral 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 buy on dips around $1918-20 with SL around $1900 for TP of $1950/$1960.
