Ichimoku Analysis (8-hours Chart)
Tenken-Sen- $1702.
Kijun-Sen- $1696
Gold recovered sharply on weak US economic data. The number of people applied for unemployment benefits during the weekend of May 2nd came to 3169000 much worse than the forecast of 3 million.
US Dollar index – weak (positive for Gold)
S&P500-Slightly positive (negative for gold)
US Bond yield- bearish (positive for gold)
Markets eye US Nonfarm payroll data to be released today for further direction.
On the flip side, the near term significant support is around $1678 (trend line support) and any violation below will drag the gold down till $1650/$1631/$1600.
The immediate resistance is around $1723, any indicative break beyond targets $1740/$1760/$1775.
It is good to buy on dips around $1712-13 with SL around $1700 for the TP of $1770.
