FxWirePro- Gold trades above $1700 on short-covering, good to sell on rallies

Ichimoku analysis (4- hour chart)

Tenken-Sen- $1727

Kijun-Sen- $1755

Gold has shown a tepid bounce above $1700 to $1737 after a massive sell-off. The yellow metal was one of the worst performers this month and lost more than 7.5%. The better than expected US economic data and surge in US treasury yields are putting pressure on the yellow metal. The US dollar index is hovering near 93 levels; any breach above 93.20 confirms further bullishness.

Factors to watch for gold price action-

 Global stock market- Slightly bearish (positive for gold)

US dollar index – Bullish (negative for gold)

US10-year bond yield- Bullish (negative for gold)

Technical:

It is facing strong support at $1675 violation below confirms that the minor top has formed at $1916. A dip till $1600/$1550 is possible. On the higher side, near-term resistance is around $1750 and a convincing break above will take the yellow metal $1768/$1785/$1800 is possible.

It is good to sell on rallies around $1750 with SL around $1765 for TP of $1675.