Ichimoku Analysis (Weekly chart)
Tenken-Sen- $1815.27
Kijun-Sen- $1778
Gold is trading lower despite weak US jobs data. The Nonfarm payrolls raised by 199000 in December below the forecast of 426000 (Positive for yellow metal). The unemployment dropped to 3.9% in Dec vs an estimated 4.1% (Slightly positive for US dollar). Annual wage inflation came at 4.7%, compared to a forecast of 4.1% (Slightly positive for the US dollar). The surge in US treasury yields for the third consecutive week and hits the highest level since Mar puts pressure on the yellow metal. It hits a low of $1791.80 and is currently trading around $1792.31.
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 $1780, violation below targets $1770/$1750. Significant reversal only below $1750.The yellow metal facing strong resistance $1815, any violation above will take to the next level $1835/$1860/$1877$1912 is possible.
It is good to sell on rallies around $1815-16 with SL around $1832 for TP of $1760.
