Ichimoku analysis (4-hour chart)
Tenken-Sen- $1815
Kijun-Sen- $1801
Previous week High- $1795
Previous week low- $1770
Gold is trading flat after a jump to $1819 the previous week. The weak dollar and declining US treasury yields are supporting the yellow metal. The US dollar index is trading below 200-4H MA; a dip to 92 is likely. It is holding well above $1800 and is currently trading around $1815.
Economic data-
The US pending home sales declined slightly by 1.8% in July, the second month in a row compared to an estimated 0.5% rise.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index – Bearish (positive for gold)
US10-year bond yield- Bearish (positive for gold)
The commitment of Traders report-(Bullish)
It shows that speculative long positions of gold up by 9364 contracts to 126636. While short positions got dropped by 7000 contracts. The overall gold long positions increased by 28% from the previous week.
Technical:
The immediate resistance is around $1821 and a convincing break above will take the yellow metal to $1835/$1850. It is facing strong support at $1770, violation below targets $1750/ $1730/$1700.
It is good to buy on dips around $1800 with SL around $1790 for TP of $1835.
