Ichimoku analysis (Weekly chart)
Tenken-Sen- $1811.45
Kijun-Sen- $1791.45
Gold is trading flat for the second consecutive week between $1793 and $1761. Easing of Omicron virus concerns and hopes of tapering by fed preventing yellow metal from further upside. The US dollar index has formed a lower high and higher low. Markets eye Fed monetary policy for direction The yellow metal hits a high of $1789 and is currently trading around $1786.78.
Economic data- US CPI surged 6.8% in November, the fastest level since 1982. The number of people who have filed for unemployment benefits declined to 184000 for the week ended Dec 4, the lowest level since Sep 6, 1969.
Factors to watch for gold price action-
Global stock market- Bullish (Positive for gold)
US dollar index –Bullish (negative for gold)
US10-year bond yield- neutral (mixed for gold)
Technical:
It faces strong support at $1760, violation below targets $1740/$1700.Significant trend continuation only below $1675. The yellow metal facing strong resistance $1792, any violation above will take to the next level $1800/$1815/$1835/$1860/$1900 is possible.
It is good to sell on rallies around $1800-01 with SL around $1815 for TP of $1762/$1740.
