Ichimoku Analysis (8-hour chart)
Tenken-Sen- $1725.30
Kijun-Sen- $1724.02
Gold is consolidating after hitting a high of $1744.65. The increase in risk appetite is putting pressure on the yellow metal. DXY continues to trade lower for 3rd consecutive days and a convincing break below 97.80 (61.8% fib) confirms further weakness.
US economic data
US ISM manufacturing index has ticked higher to 43.1 after four months of continuous decline. This shows that it is slightly stabilizing from the 11-year low. The index of new orders jumped to 31.8.
US Dollar Index – Bearish (positive for Gold)
S&P500- Bullish (negative for gold)
US Bond yield- Weak (positive for gold)
Technicals:
The yellow metal is trading flat between $1744 and $1727. The overall trend is bullish as long as support $1691 (23.6% fib) holds. Any violation below will drag it down to $1680/$1671.
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 buy on dips around $1725-26 SL around $1718 for the TP at $1764.
