Ichimoku analysis (4-Hour chart)
Tenken-Sen- $1754
Kijun-Sen- $1774
Gold showed a minor pullback after a more than $50 decline in the global financial crisis. The entire global stock markets plummet sharply due to Chinese property developer Evergrande's debt crisis. Markets eye US Fed monetary policy tomorrow for further direction.DXY lost more than 30 pips from a minor top of 93.45. Any breach above 93.75 confirms further bullishness. The yellow metal hits a low of $1766.16 and is currently trading around $1761.97.
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- Bullish (negative for gold)
Technical:
The immediate resistance is around $1770 and a convincing break above will take the yellow metal $1787/$1800 if possible. It is facing strong support at $1740, violation below targets $1$1725.
It is good to sell on rallies around $1760-61 with SL around $1775 for TP of $1675.
