Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1926.28
Kijun-Sen- $1926.28
Gold made a U-turn from a 17-month high on the strong US dollar. The yellow metal was one of the best performers of this week and surged $75 on an escalation of geopolitical tension between Russia and Ukraine. US 10-year yield regained sharply after hitting a two-week low. Gold hits a low of $1878 and is currently trading around $1913.
The US grew by 7% in the fourth quarter in line with estimates compared to 6.9% previous quarter. The number of people who have filed for unemployment benefits dropped to 232K this week vs an estimate of 233K.
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 near–term support is around $1878, violation below targets $1857/$1838. Significant reversal only below $1750.The yellow metal faces strong resistance of $1920, any violation above will take to the next level $1960/$1980.
It is good to buy on dips for $1900 with SL around $1880 for TP of $1960.
