FxWirePro: Gold trades slightly lower on strong US dollar, good to buy on dips

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1709

Kijun-Sen- $1707

Gold recovered slightly nearly $20 after weak US PPI data. The US dollar gained momentum after Fed Chairman Powell comments about negative rates. DXY jumped more than 70 pips from a low of 99.58 levels. It is currently trading around 100.30.

The US PPI demand declined -1.3% much below expectations -0.5% mom, the largest annual fall since 2015.

US Dollar index – bullish (negative for Gold)

S&P500-Slightly -weak (positive for gold)

US Bond yield- bearish (positive for gold)

The yellow metal has once again declined after hitting a high of $1719.90. It is in the consolidation phase with no follow-through buying.  On the flip side, the near term significant support is around $1693 (trend line support) and any violation below will drag the gold down till $1660/$1640.

The immediate resistance is around $1723, any indicative break beyond targets $1723/$1739. Significant trend continuation can be seen only if it breaks $1747.

It is good to buy on dips at around $1700 SL around $1690 for the TP of $1747.