FxWirePro- Gold Weekly Outlook

Ichimoku analysis (Weekly chart)

Tenken-Sen- $1776

Kijun-Sen- $1825

Gold has shown a nice recovery of more than $50 from the minor bottom of $1676. The jump came despite a surge in US bond yield. US 10- year bond yield jumped more than 12% from of low of 1.47%. US dollar index continues to trade weak and holding below 91 levels. Any violation below 91.60 confirms a bearish continuation.

Economic data:

US CPI data came at 1.3% YoY compared to a forecast of 1.4%. While CPI ex-food and energy at 0.1% m/m vs 0.2% expected. The number of people who have filed for unemployment benefits has fallen to 712000 in the week ended March 6th, compared to the forecast of 730k. The European Central Bank has said after the policy meeting that the central bank is planning to increase the pace of bond buying to compete for a pandemic.

Technical:

 It is facing strong support at $1685, violation below targets $1660/$1637. On the higher side, near-term resistance is around $1745, any indicative break above that level will take till $1760/$1783.

It is good to sell on rallies around $1738-39 with SL around $1760 for the TP of $1650.