Ichimoku analysis (4-Hour chart)
Tenken-Sen- $1792
Kijun-Sen- $1808
Gold continues to trade lower for third consecutive days on strong US dollar. The US dollar index is holding well above 200-4H EMA, a jump till 93 is possible. Markets eye ECB Pandemic emergency purchase program for further direction. The minor decline in US treasury yields is preventing the yellow metal from further fall. It hits a low of $1792 yesterday and is currently trading around $1787.
Factors to watch for gold price action-
Global stock market- Bearish (positive for gold)
US dollar index – Bullish (negative for gold)
US10-year bond yield- Bearish (positive for gold)
Technical:
The immediate resistance is around $1810 and a convincing break above will take the yellow metal $1818/$1835/$1850 if possible. It is facing strong support at $1780, violation below targets $1770/$1750.
It is good to buy on dips at $1770 with SL around $1758 for TP of $1835.
