FxWiPro: Gold Daily Outlook
Ichimoku analysis (Daily chart)
Gold is trading slightly above $1800 levels amid weak US data and dovish ECB. The central bank has kept its rates unchanged as expected and pledged to keep rates at lower levels until inflation hits 2%.to temporarily jump and revised its forward guidance on interest rates. The number of people who have filed for jobless benefits surged to 419k for the week ended July 16th compared to a forecast of 350K. The surge n the US dollar index s preventing the yellow metal from further upside. Gold hits an intraday high of $1797 and is currently trading around $1812.32.
Factors to watch for gold price action-
Global stock market- Slightly bullish (negative for gold)
US dollar index – Slightly bullish (negative for gold)
US10-year bond yield- bullish (bearish for gold)
It is facing strong support at $1790 violation below targets $1780/$1765. Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1805, any convincing break above will take the yellow metal $1825/$1835/$1860/$1900 is possible.
It is good to sell on rallies around $1810-11 with SL around $1825 for TP of $1750.