FxWirePro: Gold trades higher on US-China trade tension, good to buy on dips
Ichimoku Analysis (Daily chart)
Gold is trading well over $1700 due to renewed trade tensions between the US and China. The demand for Safe-haven increased as China imposed a security bill against Hong Kong yesterday. The yellow metal hits high of $1727 and is currently trading around 1720.
US Durable goods orders came at slightly better than the estimate at -17.2% in Apr. The number of people filed for unemployment claims rose to 2123K in a previous week vs estimate 2100K.
US Dollar Index – Bearish (positive for Gold)
S&P500- Neutral (Neutral for gold)
US Bond yield- Weak (positive for gold)
The yellow metal is trading in the range between $1765 and $1671 in this month. The near-term support is around $1690, violation below will drag it down till $1680/$1671.
The immediate resistance is around $1726, any indicative break beyond targets $1740/$1755/$1765. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely.
It is good to buy on dips around $1690-92 SL around $1670 for the TP at $1762.