Ichimoku analysis (4-Hour chart)
Tenken-Sen- $1791.53
Kijun-Sen- $1790
Gold has broken the previous week's high of $1795 and holding well above that level. The yellow metal was one of the best performers yesterday on board-based US dollar weakness.
Economic data-
The HIS Markit purchase manufacturing index for August dropped to 61.2 compared to a forecast of 62.40. The sales of existing-home sales in July came at 5.99 million units in July compared to a forecast of 5.82M.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index – Bearish (positive for gold)
US10-year bond yield- Bearish (positive for gold)
Technical:
The immediate resistance is around $1810 and a convincing break above will take the yellow metal $1820/$1835/$1850 if possible. It is facing strong support at $1770, violation below targets $1750/ $1730/$1700.
It is good to buy on dips around $1790-91 with SL around $1778 for TP of $1830.
