Ichimoku analysis (Weekly chart)
Tenken-Sen- $1756
Kijun-Sen- $1796
Previous week High- $1795
Previous week low- $1770
Gold is trading higher and holding above $1800 levels after a huge Nonfarm payroll miss. The weak US dollar is supporting yellow metal at lower levels. The dollar index declined sharply on board-based US dollar weakness. Any breach below 91.78 confirms that it has formed a temporary top around 9+3.72, a dip till 89.20 is possible. The yellow metal hits a high of $1834 and is currently trading around $1826.17.
Economic data-
The US economy has added 235000 jobs in August compared to an estimate of 720000. The Unemployment came at 5.2% in line with the estimate. Average hourly earnings surged by 0.6% MoM and 4.3% YoY. The US ISM manufacturing index came at 59.9% in August compared to the forecast of 58.5%, increased for the 15th consecutive month. The private payrolls surged to 374000 lower compared to an estimate of 640000.
Factors to watch for gold price action-
Global stock market- Bullish (negative for gold)
US dollar index – Bearish (positive for gold)
US10-year bond yield- Bearish (positive for gold)
Technical:
The immediate resistance is around $1835 and a convincing break above will take the yellow metal $1850/$1860/$1877/$1900 is possible. It is facing strong support at $1818, violation below targets $1800/$ $1770.
It is good to buy on dips around $1810-11 with SL around $1790 for TP of $1850.
