FxWirePro- Gold Weekly Outlook

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.