FxWirePro- Gold Weekly Outlook

Ichimoku Analysis (Weekly chart)

Tenken-Sen- $1877.41

Kijun-Sen- $1848.09

Gold was one of the best performers this month and surged nearly $200 on geopolitical tension. The Russian invasion of Ukraine has increased the demand for safe-haven assets like gold. According to Ukraine Interior Ministry,352 Ukrainian civilians, including 14 children killed by the Russian military  The jump in the US dollar index is putting pressure on yellow metal at higher levels. Gold hits a high of $1974 and is currently trading around $1906.

The US grew by 7% in the fourth quarter in line with estimates compared to 6.9% previous quarter. The number of people who have filed for unemployment benefits dropped to 232K this week vs. an estimate of 233K. Core PCE index came at 0.5% in-line with estimate.

Factors to watch for gold price action-

 Global stock market- Bearish (positive for gold)

US dollar index –Bullish (negative for gold)

US10-year bond yield- Bullish (negative for gold)

Technical:

The near–term support is around $1878, violation below targets $1857/$1838. Significant reversal only below $1750.The yellow metal faces strong resistance of $1930, any violation above will take to the next level $1960/$1980.

It is good to buy on dips for $1900 with SL around $1880 for TP of $1960.