FxWirePro- Gold Weekly Outlook

Ichimoku analysis (Weekly chart)

Tenken-Sen- $1746

Kijun-Sen- $1821

Gold continues to trade flat in the previous week and struggling to break above the $1800 level. The minor pullback in the US dollar index is putting pressure on the yellow metal at higher levels. DXY rose more than 90 pips from minor bottom 90.42. The US 10-year yield declined more than 3.5% from a high of 1.68%.

Economic data:

The US Fed has kept its rates unchanged and left its $120bn bond-buying programs. They have said that vaccine rollout has strengthened economic activity and employment. The number of people who have filed unemployment benefits declined by 13000 to 553000 vs an estimate of 540K. US durable goods orders declined by 1.1% in February compared to a forecast of 0.7%, the first time since Apr 2020. The flash manufacturing PMI came at 59 vs an estimate of 59.6. US real GDP expanded at an annualized rate of 4.3% in Q4 vs a forecast of 4.1%.

Technical:

 It is facing strong support at $1756, violation below targets $1740/$1730. Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1802, any indicative break above that level will take till $1821/$1832.

It is good to buy on dips around $1760 with SL around $1747 for the TP of $1793/$1802.