FxWirePro: AUD/USD holds above 0.69 handle, upbeat Australia retail sales and China Caxin services PMI to aid further gains
FxWirePro: Gold Weekly Outlook
Ichimoku Analysis (Weekly chart)
Gold is trading weak for 2nd consecutive week after hitting a high of $1765. The strong US dollar and slight jump US bond yield are putting pressure on the yellow metals at higher levels.
The US unemployment claims rose by 2.4 million last week and the total is nearing 40 million after the outbreak of coronavirus. The existing home sales declined by 17.8% in Apr, the biggest monthly decline since Jul 2010.
US Fed minutes show that a lot of uncertainty is going to persist due to coronavirus. The recovery in the economy will be much slower than anticipated as the market predicts the second wave of the corona.
US Dollar Index – Bullish (Negative for Gold)
S&P500- Weak (Positive for gold)
US Bond yield- slightly bearish (positive for gold)
The yellow metal took support near 5- week EMA and shown a minor jump till $1740. On the flip side, the near term significant support is around $1717 (7- W EMA) and any breach below will drag the gold down till $1704/$1690/$1678/$1660.
The immediate resistance is around $1741, any indicative break beyond targets $1764. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely.
It is good to buy on dips at around $1718-20 SL around $1700 for the TP at $1780.