Ichimoku analysis (4-hour chart)
Tenken-Sen- $1751.56
Kijun-Sen- $1776
Gold recovered more than $10 after hitting a low of $1750.The minor profit booking in US dollar is supporting the yellow metal at lower levels. The US dollar index is trading in a narrow range between 94.44 and 93.67 for the past week. Any surge past 94.50 confirms further bullishness. Gold hits an intraday high of $1762.10 and is currently trading around $1762.34.
Factors to watch for gold price action-
Global stock market- mixed (neutral for gold)
US dollar index – Bullish (negative for gold)
US10-year bond yield- bullish (bearish for gold)
Technical:
It is facing strong support at $1740 violation below targets $1720/$1700. Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1770, any convincing break above will take the yellow metal $1787/$1800/$1825/$1835/$1860/$1900 is possible.
It is good to sell on rallies around $1772 with SL around $1782 for TP of $1720.
