Ichimoku Analysis (Weekly chart)
Tenken-Sen- $1852.25
Kijun-Sen- $1925.41
Gold price remained above $1800 on recession fears. The falling equity markets and yields support the yellow metal at lower levels. Markets eye US Fed meeting minutes and Nonfarm payroll for further direction. According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Jul rose to 85.6% from83.6% a week ago. It hits a high of $1814.32 and is currently trading around $1811.68.
The Personal consumption expenditure which is Federal Reserve preferred inflation report came at 6.3% year-on-year and 0.6% mom slightly below forecast. US final GDP shrinks by 1.6% in the first quarter of 2022 compared to a forecast of -1.5%. US Conference Board consumer confidence and Richmond manufacturing came below estimate.
Factors to watch for gold price action-
Global stock market- Bearish (positive for gold)
US dollar index – Bearish (Positive for gold)
US10-year bond yield- Bearish (Positive for gold)
Technical:
The near–term support is around $1800, a breach below targets $1780/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces minor resistance around $1821, any breach above will take to the next level $1842/$1850/$1875/$1900.
It is good to buy on dips around $1785-86 with SL around $1750 for TP of $1850/$1870.
