FxWirePro: Gold Weekly outlook
Ichimoku Analysis (Weekly Chart)
Gold is trading higher for 2nd consecutive week and jumped more than $180 on safe-haven demand. The yellow metal hits an all-time high at $1991 and is currently trading around $1972. The US dollar index recovered more than 100 pips after hitting a 26-month low at 92.55. The US real GDP declined by historic 9.6% in the second quarter compared to -5.0% in the first quarter. The continuing claims rose above 17 million and the number of people applied for unemployment benefits rose for the second consecutive week.
US Dollar Index – Bullish (negative for yellow metal)
S&P500- Positive (negative for gold)
US Bond yield- weak (positive for gold)
The yellow metal lost more than $20 from high and any violation below $1960 confirms further bearishness. A decline till $1940/$1907 is possible.
The immediate resistance is around $2000, any indicative break beyond targets $2025/$2050.
It is good to sell on rallies around $1988-90 with SL around $2000 for the TP of $1908.