Ichimoku analysis (Weekly chart)
Tenken-Sen- $1784
Kijun-Sen- $1818
Gold surged more than $40 previous on US bond yields selling. The US 10- year yield continues to trade weak after forming a minor top around 1.705%. The slight pullback in the US dollar index from a low of 89.65 is putting pressure on the yellow metal at higher levels. Gold hits a high of $1890 and is currently trading around $1884.12.
Economic data:
. The minutes for the FOMC meeting in Apr showed that some of the members are slightly hawkish and discussed QE tapering. "A number of participants suggested that if the economy continued to make rapid progress toward the Committee's goals, it might be appropriate at some point in upcoming meetings to begin discussing a plan for adjusting the pace of asset purchases," the minutes said. The number of people who have filed for unemployment benefits declined to 444000 the previous week compared to a forecast of 453K. The Philadelphia Federal reserve business activity fell to 31.5 in May from 50.2 in Apr.
Technical:
It is facing strong support at $1870, violation below targets $1856/$1840/$1820. Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1900, any convincing break above confirms bullish continuation. A jump to $1932/$1950 is possible.
It is good to buy on dips around $1860 with SL around $1845 for the TP of $1900.
