Ichimoku analysis (Weekly chart)
Tenken-Sen- $1804.58
Kijun-Sen- $1804.29
Gold is trading flat after hitting a high of $1818. The minor decline in the US dollar index is supporting the yellow metal at lower levels. The rebound of more than 9% in the US 10-year yield is preventing gold from further sell-off. It hits an intraday high of $1802 and is currently trading around $1802.78.
Economic data:
The minutes of the Fed reflect more optimism over US economic recovery. The Fed has not given any timeline for the scale-back QE program due to the uncertainty. The services PMI contracted to 60.1 in June compared to a forecast of 63.40.
Technical:
It is facing strong support at $1780, violation below targets $1760/$1740/$1720/$1700. Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1820, any convincing break above will take the yellow metal to $1836/$1860 is possible.
It is good to buy on dips around $1790-91 with SL around $1772 for the TP of $1836.
