Ichimoku Analysis (4 hour chart)
Tenken-Sen- $1986.07
Kijun-Sen- $1987.02
Gold lost its shine on easing Geo political tension. It hit a low of $1972.96 and is currently trading around $1972.85. The yellow metal was one of the best performers the previous month as a war between Israel and Gaza intensified.
The increase in risk appetite across investors has dragged the yellow metal from a multi-month high. Markets eye FOMC member Waller's speech today for further movement.
US dollar index- Bearish. Minor support around 104.80/104. The near-term resistance is 106.25/107.50.
According to the CME Fed watch tool, the probability of a no-rate hike in Nov increased to 90.2% from 74.40% a week ago.
The US 10-year yield showed a minor pullback of more than 4% from a minor bottom of 4.48%. The US 10 and 2-year spread widened to -28% from -22%.
Factors to watch for gold price action-
Global stock market- Bearish (positive for gold)
US dollar index - Bearish (positive for gold)
US10-year bond yield- Bearish (positive for gold)
Technical:
The near–term support is around $1970, a break below targets of $1960/$1950/$1926. The yellow metal faces minor resistance around $2010 and a breach above will take it to the next level of $2020/$2048.
It is good to sell below $1970 with SL around $1980 for TP of $1950.
