FxWirePro: Gold Weekly Outlook
Ichimoku analysis (Weekly chart)
Tenken-Sen- $1865
Kijun-Sen- $1919
Gold showed a massive recovery and broken significant resistance at $1906 on the weak US dollar. The yellow metal hits a high of $1921.85 at the time of writing and is currently trading around $1921.75. Markets eye run-off elections in Georgia on Jan 5 for further directions. If Democrats win both seats, the hopes of more stimulus will become reality.
Economic data:
With no major economic data previous week due to the New Year holidays. Significant data to be watched this week are the US ISM manufacturing index, Nonfarm payroll for further direction.
Technical:
It is facing strong resistance at $1925, a surge beyond targets $1950/$1960.On the lower side, near term support is around $1885, any indicative break below that level will take till $1863/$1850/$1822.
It is good to buy on dips at around $1900 with SL around $1885 for the TP of $1960.
