FxWirePro- Gold Daily Outlook
Ichimoku Analysis (4-hour Chart)
Gold lost its shine after Fed chairman comments. He said that the Central bank to be more aggressive if inflation pressure continues. US retail sales rose by 0.9% in Apr compared to 1%. Core sales jumped 0.6% vs. the Estimate of 0.4%. It hits a high of $1807.75 and is currently trading around $1809.34.
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)
The near–term support is around $1785, a breach below targets $1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1836 (23.6% fib), any breach above will take to the next level $1850/$1862/$1880.
It is good to sell on rallies around $1828-30 with SL around $1860 for TP of $1750/$1700.