Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1709
Kijun-Sen- $1707
Gold recovered slightly nearly $20 after weak US PPI data. The US dollar gained momentum after Fed Chairman Powell comments about negative rates. DXY jumped more than 70 pips from a low of 99.58 levels. It is currently trading around 100.30.
The US PPI demand declined -1.3% much below expectations -0.5% mom, the largest annual fall since 2015.
US Dollar index – bullish (negative for Gold)
S&P500-Slightly -weak (positive for gold)
US Bond yield- bearish (positive for gold)
The yellow metal has once again declined after hitting a high of $1719.90. It is in the consolidation phase with no follow-through buying. On the flip side, the near term significant support is around $1693 (trend line support) and any violation below will drag the gold down till $1660/$1640.
The immediate resistance is around $1723, any indicative break beyond targets $1723/$1739. Significant trend continuation can be seen only if it breaks $1747.
It is good to buy on dips at around $1700 SL around $1690 for the TP of $1747.
