FxWirePro: Gold recovers on weak US dollar, good to sell on rallies

Ichimoku Analysis (4 Hour Chart)

Tenken-Sen- $1943

Kijun-Sen- $1939

Gold is trading highly volatile and lost more than $60 after a spike till $1977. US Fed chairman Powell said in Jackson's hole symposium on the shift in policy. The Fed is going to adopt a flexible form of average inflation targeting means lower rates for a longer period. The US 10-year yield jumped more than 20$% after fed policy shift and real yield is at -0.99% from -1.03% yesterday.  

US Dollar Index –Bearish (Positive for yellow metal)

S&P500- Positive (negative for gold)

US Bond yield- positive (negative for gold)

Technical:

The immediate support is around $1900, any indicative break below targets $1862. Major weakness only if it breaks below $1860.The near term resistance is at $1975, the violation above will take to the next level $2000/$2015.

It is good to sell on rallies around $1958-60 with SL $1975 for the TP of $1907.