Ichimoku analysis (4-Hour chart)
Tenken-Sen- $1806
Kijun-Sen- $1814.83
Gold is trading slightly below $1800 ahead of US Non-Farm payroll. The rebound in US 10- year bond yields by nearly 10% and strong stock markets are putting pressure on the yellow metal. The US economy to add 87000 in July compared to the previous month's 850000. The US dollar showed a minor pullback above 92 levels is also putting pressure on the yellow metal.
The number of people who have filed for unemployment benefits dropped by 14000 to 385000 for the week ended Jul 31st compared to forecast of 382000.
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- slightly bullish (negative for gold)
Technical:
It is facing strong support at $1790, violation below targets $1780/$1765. Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1821 and a convincing break above will take the yellow metal $1835/$1860/$1900 is possible.
It is good to buy on dips around $1790-91 with SL around $1778 for TP of $1850
