Ichimoku Analysis (Weekly chart)
Tenken-Sen- $1809.42
Kijun-Sen- $1799
Gold surged more than $50 the previous week on geopolitical tension between Russia and Ukaraine.US has warned Russia could attack Ukraine any day. The demand for safe-haven assets supports the yellow metal at lower levels. The surge in US CPI and US treasury yields prevents the yellow metal from further upside. US Jan CPI came at 7.5% YoY vs .forecast of 7.3%, the highest level since Feb 1982. Gold hits a high of $1865 and is currently trading around $1853.
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 $1845, violation below targets $1770/$1750. Significant reversal only below $1750.The yellow metal faces strong resistance of $1810, any violation above will take to the next level $1835/$1860/$1877$1912 is possible.
It is good to buy on dips for $1835 with SL around $1820 for TP of $1900.
