FxWirePro: Gold Daily Outlook

Ichimoku Analysis (Daily chart)

Tenken-Sen- $1728.69

Kijun-Sen- $1713.30

Gold lost more than $30 yesterday on profit booking as investors felt safe to sit on cash. The uncertainty due to US-China dollar trade tension and economic recession might support yellow metal at lower levels.

The US unemployment claims rose by 2.4 million last week and the total is nearing 40 million after the outbreak of coronavirus. The existing home sales declined by 17.8% in Apr, the biggest monthly decline since Jul 2010.

US Dollar Index – Slightly bullish (Negative for Gold)

S&P500- Weak (Positive for gold)

US Bond yield- slightly bearish (positive for gold)

Technicals:

The yellow metal took support near 21- day MA and shown a minor jump till $1730.  On the flip side, the near term significant support is around $1716 (21- day MA) and any breach below will drag the gold down till $1710/$1690/$1678/$1660.

The immediate resistance is around $1755, any indicative break beyond targets $1764. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely.

It is good to buy on dips at around $1700 SL around $1680 for the TP at $1799.