Ichimoku analysis (4-hour chart)
Tenken-Sen- $1777.69
Kijun-Sen- $1779.80
Gold has recovered from inflation worries and US dollar weakness. The US dollar index is two weeks low on upbeat market sentiment. Any breach below 93.50 confirms further bearishness. Markets eye US Philly Fed manufacturing index and initial jobless claims for further direction. US stocks hit an all-time high due to positive earnings also putting pressure on the yellow metal. Gold hits an intraday high of $1789 and is currently trading around $1784.59.
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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:
It is facing strong support at $1760 violation below targets $1750/$1740/$1720. Bearish continuation only below $1675. On the higher side, near-term resistance is around $1800, any convincing break above will take the yellow metal $1825/$1835/$1860/$1900 is possible.
It is good to sell on rallies around $1785-86 with SL around $1800 for TP of $1720.
