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FxWirePro- Gold Vs US 10-year yield

Ichimoku Analysis (4-hour chart)

 

Tenken-Sen- $1831.78

 

Kijun-Sen- $18247.74

 

Gold prices showed a profit booking due to a minor pullback in the US dollar. US dollar index and US treasury yield gained after US economic data yesterday. Gold hits a high of $1844 and is currently trading around $1834.50.

 

 The US manufacturing PMI jumped to 47.70 last month from 47.4 in Jan, below the estimate of 48. While ISM manufacturing prices rose to 51 from a forecast of 45.

 Major economic data for this week

 

 US Initial jobless claims

 

US dollar index-Bullish. Minor support around 104.35/103.70. The near-term resistance is 105.35/106.

 

 According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar increased to 30% from 24% a week ago.

 

 The US 10-year yield surged sharply and holds above 4%, the highest level since Nov. The US 10 and 2-year spread widened to -89 basis points from -77% bpbs.

 

  Factors to watch for gold price action-

 

   Global stock market- bearish (Positive for gold)

 

  US dollar index - Bullish (Negative for gold)

 

  US10-year bond yield- Bullish (negative for gold)

 

Technical:

  The near–term support is around $1820, a break below targets of $1800/ $1788/$1748. The yellow metal faces minor resistance around $1847, and a breach above will take it to the next level of $1860/$1888/$1900.

 It is good to sell on rallies around $1845-46 with SL around $1860 for TP of $1800.

 

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