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FxWirePro- Gold jumps above $1800 on weak dollar, good to buy on dips

Ichimoku analysis (4-Hour chart)

Tenken-Sen- $1791.53

 Kijun-Sen- $1790

 

Gold has broken the previous week's high of $1795 and holding well above that level.  The yellow metal was one of the best performers yesterday on board-based US dollar weakness. 

Economic data-

The HIS Markit purchase manufacturing index for August dropped to 61.2 compared to a forecast of 62.40. The sales of existing-home sales in July came at 5.99 million units in July compared to a forecast of  5.82M.

 Factors to watch for gold price action-

 

Global stock market- Bullish (negative for gold)

 

US dollar index – Bearish (positive for gold)

 

US10-year bond yield- Bearish (positive for gold)

 

Technical:

The immediate resistance is around $1810 and a convincing break above will take the yellow metal $1820/$1835/$1850 if possible. It is facing strong support at $1770, violation below targets $1750/ $1730/$1700.

It is good to buy on dips around $1790-91 with SL around $1778 for TP of $1830.

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