Ichimoku analysis (Weekly chart)
Tenken-Sen- $1815.27
Kijun-Sen- $1778.45
Gold lost more than $10 from a high of $1814 on the hawkish central bank. US central bank has kept its rate unchanged and doubled the size of tapering from $15 billion per month to $30 billion per month. Almost two-thirds of Fed members have projected two to three rate hikes in 2022. The Bank of England surprised markets by raising rates from a record low of 0.10% to 0.25% due to a jump in inflation. The US dollar index holding above 96.50, any breach above 97 confirms further bullishness. The yellow metal hits an intraday high of $1802.48 and is currently trading around $1801.87.
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:
It faces strong support at $1780, violation below targets $1770/$1750/$1740/$1700.Significant trend continuation only below $1675. The yellow metal facing strong resistance $1815, any violation above will take to the next level $1835/$1860/$1900 is possible.
It is good to buy on dips around $1762-63 with SL around $1750 for TP of $1815/$1835.
