FxWirePro: Gold Daily Outlook

Ichimoku Analysis (Daily chart)

Tenken-Sen- $1726.34

Kijun-Sen- $1732.96

Gold is declining after 3 days of minor bullishness as no follow-through buying. The strong global stock market and increased risk appetite due to the opening up of economies are putting pressure on the yellow metal. DXY continues to trade lower for 3rd consecutive week and a convincing break below 97.25 (100-W MA) confirms further weakness.

Market eyes US ISM services and ADP employment data for further direction.

US Dollar Index – Bearish (positive for Gold)

S&P500- Bullish (negative for gold)

US Bond yield- strong (negative for gold)

Technicals:

The yellow metal declined more than $20 from a high of $1744. In the hourly chart, it is holding below 200-H MA.  This confirms intraday bearishness, dip till $1700/$1690 likely.

The immediate resistance is around $1745, any indicative break beyond targets $1755/$1765. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely.

It is good to sell on rallies around $1730-31 SL around $1741 for the TP at $1700.