Ichimoku Analysis (Weekly Chart)
Tenken-Sen- $1747.64
Kijun-Sen- $1875.71
Gold price recovered above $1700 despite the strong US dollar. It hits a fresh 20-year high on upbeat US Non-farm roll data. US economy has added 315000 jobs in Aug compared to a forecast of 295K. The rate of unemployment rose to 3.7% vs an estimated 3.5%. Average hourly earnings came at 0.30% below the consensus of 0.40%.
US ISM manufacturing PMI came at 52.80 in Aug vs expectations of 52. The number of people who have filed for unemployment benefits has dropped to 23200 compared to an estimated 252K.
According to the CME Fed watch tool, the probability of a 75 bpbs rate hike in Sep dropped to 56% from 61% a week ago.
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 $1690, a close below targets $1671/$1650/$1600. Significant reversal only below $1650. The yellow metal faces minor resistance around $1720, breach above will take it to the next level of $1740/$1760/$1775/$1800/$1820.
It is good to buy on dips around $1697-98 with SL at around $1681 for TP of $1800.
