Ichimoku analysis (Daily chart)
Tenken-Sen- $1812
Kijun-Sen- $1838.82
Gold has declined sharply yesterday and hits a 2 -1/2 month low. The surge in PCE to 3.9% above Fe's inflation target is putting pressure on safe-haven assets like gold. The yellow metal has lost more than $150 after the hawkish Fed policy. The US dollar index is holding slightly above 92 levels, breach above 92.50 confirms a bullish continuation. With no primary economic data in focus, markets eye US nonfarm payroll data on Friday for further upside. Gold hits an intraday low of $1759 and is currently trading around $1759.86.
Technical:
It is facing strong support at $1744, violation below targets $1711/$1675. Bearish trend continuation only if it breaks below $1675. On the higher side, near-term resistance is around $1775, any convincing surge above will take the yellow metal to $1789/$1800 is possible.
It is good to sell on rallies around $1768-70 with SL around $1785 for the TP of $1700.
