FxWirePro- Gold Daily Outlook

Ichimoku analysis (Hourly chart)

Tenken-Sen- $1819

Kijun-Sen- $1828.54

Gold declined sharply after an unexpected spike in US inflation. The US CPI rose by 0.8% in Apr much better than the forecast of 0.2%. The annual inflation surged to 4.2% in Apr from 2.6% in Mar, the highest level in 13 years. The US 10-year yield surged more than 6% from yesterday's bottom 1.609%. DXY jumped more than 60 pips from a minor bottom at 90.16. The surge in the number of new coronavirus cases in major countries and geopolitical tensions is preventing yellow metal from further decline. The yellow metal hits an intraday high of $1813 and is currently trading around $1817.66.

Technical:

It is facing strong support at $1807, violation below targets $1800/$1790/$1760.Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1831, any indicative break above that level will take till $1850/$1870/$1900.

 It is good to sell on rallies around $1830-31 with SL around $1842 for the TP of $1790.