Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $2170.11
Kijun-Sen- $2186.28
Gold has consolidated in a narrow range between $2157 and $21801 for the past three days. The yellow metal hit a low of $2169 yesterday and is currently trading around $2169.75.
The yellow metal hit an all-time high last week as the fed dot plot shows three rate cuts this year.
According to the CME Fed watch tool, the probability of a 25 bpbs rate cut in June % increased to 64.2% from 50% a week ago.
US dollar index- Bullish. Minor support around 103.40/102.70. The near-term resistance is 104.25/105.
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 $2157, a break below targets of $2145/$2130/$2114/$2100. The yellow metal faces minor resistance around $2180 and a breach above will take it to the next level of $2200/$2225/$2250.
It is good to sell on rallies around $2178.-80 with SL around $2200 for TP of $2100.
