Ichimoku Analysis (Weekly chart)
Tenken-Sen- $1892.66
Kijun-Sen- $1911.92
Gold price lost its shine on upbeat US inflation data. It came at 8.6% in May compared to a forecast of 8.3%, the largest YOY increase in 40 years. US dollar and treasury yields surged sharply after the data. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul increased to 52.7% from 14.6 % a week ago. It hits an intraday low of $1860 and is currently trading around $1863.88.
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 $1850, a breach below targets $1825/$1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1880, any breach above will take it to the next level$1900/$1920.
It is good to buy on dips around $1828-30 with SL around $1800 for TP of $1920.
