FxWirePro: Gold Short-term Outlook

Ichimoku Analysis (Daily Chart)

Tenken-Sen- $1474

Kijun-Sen- $1468

Gold has broken major trend line resistance $1483 after a long consolidation in thin trading due to festive mood. The yellow metal was trading weaker after forming a temporary top of $1557 on account of easing trade tension between the US and China which has decreased demand for Safe-haven assets like yen and gold. It is currently trading around $1489.15.

The slight jump in US 10- year bond yield and strength in the US dollar index is putting pressure on yellow metal at higher levels.  The pair is trading inside the cloud, any daily close beyond $1491 with heavy volumes confirms trend continuation, a jump till $1515/$1525/$1555 is possible.

On the flip side, nearby significant support is around $1449-56 and any violation underneath will drag the gold down till $1426/$1414 (200- day MA).

It is good to buy on dips around $1478-80 with SL $1455 for the TP of $1555