FxWirePro- Gold Daily Outlook

Ichimoku Analysis (4-hour Chart)

Tenken-Sen- $1829.71

Kijun-Sen- $1818.09

Gold gained sharply on weak US bond yield.  The US 10-year treasury yield dropped more than 8% after US housing data. US Philly fed manufacturing index slumped to a 2-year low in May at 2.6 compared to a forecast of 14.90. Existing home sales dropped to 5.61M vs. 5.75M the previous month. The number of people who have filed for unemployment benefits rose to 218000 last week. It hits a high of $1849.25 and is currently trading around $1841.61.

Factors to watch for gold price action-

Global stock market- bearish (positive for gold)

US dollar index –Bearish (positive for gold)

US10-year bond yield- Bearish (positive for gold)

Technical:

The near–term support is around $1830, a breach below targets $1820/$1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1850, any breach above will take to the next level $1862/$1880.

It is good to buy on dips around $1825-26 with SL around $1800 for TP of $1885.