FxWirePro- Gold Weekly Outlook

Ichimoku analysis (Weekly chart)

Tenken-Sen- $1718

Kijun-Sen- $1717

Gold has declined sharply after a minor jump to $1758. The weakness in the US dollar index is supporting the yellow metal at lower prices. US dollar index lost more than 100 pips from a minor top 93.43. The upbeat market sentiment and positive vaccine rollout are putting pressure on the US dollar. US 10-year yield is trading slightly lower after forming a minor top around 1.774%.

Economic data:

US ISM services surged to a record high in Mar due to upbeat growth in new orders. It came at 63.7comapred to a forecast of 58.3. US Producer price index for Mar surged to 1% compared to a forecast of 0.5%.  

Technical:

 It is facing strong support at $1730, violation below targets $1719/$1700. Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1760, any indicative break above that level will take till $1783/$1800.

It is good to sell on rallies around $1753-54 with SL around $1760 for the TP of $1732/$1700.