FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1814.32
Kijun-Sen- $1817.51
Gold continues to trade lower on surging US Treasury yields. The downside in a yellow metal capped due to risk-on sentiment. The US 10-year yield is trading higher for the fourth consecutive week and hits two years highs in hopes of a rate hike by the Fed. The minor pullback in the US dollar index after hitting a multi-week low of 94.62 also prevented gold from further upside. Gold hits a low of $1805 and is currently trading around $1811.
The Empire State survey declined to -0.70 points in Jan from 31.90 for the first time in 20 months.
Factors to watch for gold price action-
Global stock market- Bearish (Positive for gold)
US dollar index –Bullish (negative for gold)
US10-year bond yield- Bullish (Negative for gold)
Technical:
The near–term support is around $1800, violation below targets $1780/$1760/$1750. Significant reversal only below $1750.The yellow metal facing strong resistance $1835, any violation above will take to the next level $1860/$1877/$1912 is possible.
It is good to sell on rallies around $1818-20 with SL around $1835 for TP of $1755.
