Ichimoku analysis (4-Hour chart)
Tenken-Sen- $1778
Kijun-Sen- $1758
Gold is trading higher for the past four days inching towards the $1800 mark despite the strong US dollar. The US retail sales have dropped by 1.1% in July compared to a forecast of -0.2%. But the jump in delta variant cases across the globe has increased demand for safe-haven assets like yen and gold. The US 10-year bond yield recovered more than 5% is preventing the yellow metal from further upside. The Yellow metal hits an intraday high of $1792 and is currently trading around $1788.80. Market eyes US Fed meeting minutes for further direction.
Factors to watch for gold price action-
Global stock market- Weak (positive for gold)
US dollar index – Bullish (negative for gold)
US10-year bond yield- Slightly bullish (negative for gold)
Technical:
The immediate resistance is around $1800, a convincing break above will take the yellow metal $1835/$1860 is possible. It is facing strong support at $1770, violation below targets $1762/$1750.
It is good to buy on dips for around $1775-76 with SL around $1760 for TP of $1831.
