Ichimoku analysis (4-Hour chart)
Tenken-Sen- $1759.27
Kijun-Sen- $1746.45
Gold trades weak for second consecutive days and has lost more than $20 on the surging US dollar. The US dollar index is holding above 94 levels, any surge past 94.50 confirms a bullish continuation. The US 10-year yield regained above 1.50% levels and the 30-year yield hits three months high on hopes of US fed bond tapering and rising crude oil price. The overall trend is still on the downside as long as resistance $1835 holds.
Economic Data-
US ISM services PMI came at 61.9 in September compared to a forecast of 59.90.
The factors dragging the gold prices are
USDJPY-
The yen and gold are 90% positively correlated to each other. USDJPY jumped after a minor decline below 111 level on rising US treasury yield.
Technical:
The immediate resistance is around $1770 and a convincing break above will take the yellow metal to $1787/$1800. It is facing strong support at $1750, violation below targets $1740/$1720.
It is good to sell on rallies around $1770-71 with SL around $1787 for TP of $1675.
