FxWirePro- Gold Weekly outlook

Ichimoku analysis (Weekly chart)

Tenken-Sen- $1756.57

 Kijun-Sen- $1797.30

Gold is trading below $1800 for third consecutive weeks on surging US Treasury yields. The US 10-year yield jumped more than 15% after the hawkish Fed policy. The Chinese Evergrande debt crisis is supporting the yellow metal at lower levels.  The company has missed the deadline for US bond interest payment. DXY facing a hurdle at trend line resistance at 93.45, any breach above 93.45 confirms further bullishness. The yellow metal hits a low of $1740 and is currently trading around $1758.78.

Economic data-
Fed has kept its rates unchanged at 0% to 0.25% and maintains its $80 billion treasury buying program as expected.  The central bank said bond tapering to start by November 2021 and a rate hike may come in 2022. The number of people who have filed for unemployment benefits rose to 351000 for the week ended Sep 18th compared to a forecast of 320000.

Factors to watch for gold price action-
 
Global stock market- Bullish (negative for gold)
 
US dollar index – mixed (neutral for gold)
 
US10-year bond yield- Bullish (negative for gold)
 Technical:
The immediate resistance is around $1770 and a convincing break above will take the yellow metal $1787/$1800 if possible. It is facing strong support at $1740, violation below targets $1$1725.

It is good to sell on rallies around $1765-66 with SL around $1787 for TP of $1675.