Ichimoku analysis (4-hour chart)
Tenken-Sen- $1696
Kijun-Sen- $1707
Gold has shown a massive recovery of more than $40 from a low of $1677.99. The yellow metal has formed a double bottom around $1675 and major weakness only below that level. US President Biden unveiled a more than $2 trillion infrastructure and economic recovery package as part of "Build Back Better". US dollar index is trading higher and hits the highest level since November 2020. A strong close above 200-day EMA confirms trend continuation; a jump till 94.30 is possible. The US 10-year bond yield jumped more than 10% from a low of 1.59% made on Mar 24th, 2021. The yellow metal hits an intraday low of $1677 and is currently trading around $1680.
Economic data:
The number of private jobs added in the US rose to 517K in mar well above the upwardly revised previous month 176K. But less than the estimate of 552k. US Pending home sales fell by 10.6% in Feb compared to a forecast of -3.1%.
Technical:
It is facing strong support at $1675, violation below targets $1650/$1625. On the higher side, near-term resistance is around $1720, any indicative break above that level will take till $1737/$1745/$1760.
It is good to buy on dips around $1690-91 with SL around $1675 for the TP of $1755.
