FxWirePro- Gold Weekly outlook

Ichimoku Analysis (Weekly chart)

Tenken-Sen- $1974

Kijun-Sen- $1911.92

Gold continues to trade weak for the second consecutive week on board-based US dollar buying. High inflation and hawkish central banks are pushing global bond yields higher.  The US fed chairman Powell said that the central bank will raise by 50 bpbs at May 3-4 policy meeting and hinted at a faster pace of monetary tightening this year. The yellow metal hits an intraday low of $1921.57 and is currently trading around $1923.70.

The number of people who have filed for unemployment benefits declined to 184000 last week vs. an estimate of 180K. US Philly Fed manufacturing index declined to 17.6 in Apr vs. 21 expected.

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 $1915, violation below targets $1900/$1890. Significant reversal only below $1890. A dip to $1850/$1800 is possible. The yellow metal faces strong resistance of $1940, any breach above will take to the next level $1960/$1982/$2000.

It is good to sell on rallies around $1938-40 with SL around $1960 for TP of $1800.