Gold regained above $1850 on the weak USA dollar. It dropped sharply despite the hawkish USA-federal monetary policy. The US dollar index dropped to 103.41 yesterday and showed a minor pullback. Unexpected rate hike of more than 50bpbs by the Swiss bank also puts pressure on the yellow metal. It hits a high of $1857 yesterday and is currently trading around $1840.
Factors to watch for gold price action-
Global stock markets- Bearish (Positive for gold)
USA dollar index –Bullish (negative for gold)
US10-year bond yield- Bullish (negative for gold)
The near–term support is around $1810, a breach below targets $1820/$1780/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The gold faces strong resistance of $1860, any breach above will take it to the next level of $1880/$1900/$1920.
It is good to sell on rallies around $1840 with SL around $1861 for TP of $1750.