Ichimoku analysis (Weekly chart)
Tenken-Sen- $1778
Kijun-Sen- $1796
Gold surged sharply more than $30 on Friday after dismal US consumer confidence data. The University of Michigan consumer sentiment declined sharply to 70.20 for Aug, the lowest level since 2011. The US 10-year yield lost more than 5% after the data. The US dollar index is trading well below 93 levels, any breach below 92.65 confirms further bearishness. The Yellow metal hits an intraday high of $1782 and is currently trading around $1775.60.
Economic data-
. The US CPI jump 5.4% in July from a year earlier, but core inflation came at 0.3% below estimate.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index – Bearish (negative for gold)
US10-year bond yield- slightly bullish (negative for gold)
Technical:
The immediate resistance is around $1780 and a convincing break above will take the yellow metal to $1800/$1835. It is facing strong support at $1750, violation below targets $1730/$1700.
It is good to buy on dips for around $1760 with SL around $1748 for TP of $1800.
