Ichimoku Analysis (Daily chart)
Tenken-Sen- $1717.25
Kijun-Sen- $1718.07
Gold showed minor recovery till $1721.85 on a weak US dollar. But strength in the global stock market is putting pressure at higher levels. The ECB has raised its bond-buying program by 600 billion Euros to improve growth. DXY hits- 2-1/2 month low and any break below 96.40 (200-W MA) confirms further weakness.
The number of people filed for unemployment benefits rose to 1.87 million last week, slightly worse than the forecast of 1.80 million. Markets eye US NFP data for further direction.
US Dollar Index – Bearish (positive for Gold)
S&P500- Bullish (negative for gold)
US Bond yield- strong (negative for gold)
Technicals:
The yellow metal has declined more than $10 from high $1721.75. Any violation below $1690 will drag the yellow metal down till $1670/$1660 likely.
The immediate resistance is around $1723 (200-H MA), any indicative break beyond targets $1745/$1755/1765. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely.
It is good to sell on rallies around $1715-16 SL around $1726 for the TP at $1660.
