Ichimoku Analysis (Weekly Chart)
Tenken-Sen- $1764.42
Kijun-Sen- $1875.12
Gold price pared most of its gains on the US dollar rally. It regained sharply above 108 and hots multi top high on surge in US bond yield. Any weekly close above 108 confirms further bullishness.
The meeting shows that the central bank to hike rates further until inflation cools off. US retail sales came unchanged at 0% compared to a forecast of 0.1%. US Philly fed manufacturing index rose to 6.2 in Aug compared to an estimate of -5. The number of people who have filed for unemployment benefits dropped to 250000 below expectations of 265K.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep rose to 47% from 45% a week ago.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index – Bullish (Negative for gold)
US10-year bond yield- Bullish (negative for gold)
Technical:
The near–term support is around $1740, a breach below targets $1720/$1700/$1650. Significant reversal only below $1650. The yellow metal faces minor resistance around $1760, breach above will take it to the next level of $1775/$1800/$1820.
It is good to sell on rallies around $1760-61 with SL at around $1781 for TP of $1700.
