Ichimoku Analysis (Weekly chart)
Tenken-Sen- $1816.37
Kijun-Sen- $1821.22
Gold is holding above $1800 on the weak US dollar. The yearly inflation surged by 7%, the highest level since June 1982. The US dollar index hits multi-week lows at 94.62 despite the hawkish Fed. It regained above 95 level due to catch up in US treasury yields. Gold hits an intraday high of $1820.21 and is currently trading around $1820.
Economic data-
US retail sales declined by 1.9% in Dec compared to a forecast of -0.1%. The number of people who have filed for unemployment benefits rose by 23000 to 230000 previous week vs estimate of 199K.
Factors to watch for gold price action-
Global stock market- Bearish (Positive for gold)
US dollar index –Bearish (positive for gold)
US10-year bond yield- Bullish (Negative for gold)
Technical:
The near–term support is around $1810, violation below targets $1800/$1780. Significant reversal only below $1750.The yellow metal facing strong resistance $1835, any violation above will take to the next level $1860/$1877/$1912 is possible.
It is good to buy on dips around $1810-11 with SL around $1800 for TP of $1860.
