Ichimoku Analysis (Weekly outlook)
Tenken-Sen- $1892.66
Kijun-Sen- $1911.92
Gold lost its shine after upbeat US jobs data. US economy has added 390K jobs in May, above expectations of 325K. The unemployment rate rose to 3.6% vs. 3.5%, hourly earnings dropped to 0.3% below the estimate of 0.4%. The optimistic jobs data have increased the chance of an aggressive rate hike by the Fed. According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Jul increased to 89.5% from 88.6% a day ago. It hits a low of $1847 on Friday and is currently trading around $1855.90.
Factors to watch for gold price action-
Global stock market- Mixed (neutral for gold)
US dollar index –Bullish (negative for gold)
US10-year bond yield- Bearish (negative for gold)
Technical:
The near–term support is around $1845, a breach below targets $1828/$1820/$1800/$1750. Significant reversal only below $1750. A dip to $1700/$1689 is possible. The yellow metal faces strong resistance of $1875, any breach above will take to the next level $1880/$1900/$1920.
It is good to buy on dips around $1840-41 with SL around $1820 for TP of $1920.
