FxWirePro: Gold trades lower, markets eye US NFP

Ichimoku Analysis (hourly chart)

Tenken-Sen- $1551

Kijun-Sen- $1550.69

Gold continues to trade weak after hitting a 7-year high at $1611 on easing US-Iran geopolitical tension. Chinese chief trade negotiator is set to visit Washington by Jan 15th and phase one deal to be signed. The easing trade tension will put pressure on Safe-haven assets like yen and gold. The yellow metal hits low of $1540 and is currently trading around $1548.

US Non-farm-payrolls are anticipated to increase 164000 in Dec compared to November 266000 gain. The unemployment rate is supposed to be steady at 3.5%. US 10- year bond yield lost more than 2% after 7.5% jump, the spread between US 10 and 2-year has slightly narrowed to 27 bps from 35 bps.

The near term resistance is around $1575, any break over targets $1588/$1600. On the flip side, nearby significant support is around $1543 (200 -H MA) and violation underneath will drag the gold down till $1518/$1507.

It is good to sell on rallies around $1555-56 with SL $1565 for the TP of $1538/$1518.