FxWirePro: Gold Daily Outlook

Ichimoku Analysis (4-hour Chart)

Tenken-Sen- $1872.86

Kijun-Sen- $1852.16

Gold continues to trade higher for the 7th consecutive week and jumped more than $90 this week. The jump was mainly due to a weak US dollar and an EU recovery fund of 750 billion euros. The total number of cases in the USA crossed 4 million and 143967 deaths. Markets eye US flash manufacturing data and new home sales for further direction.

US Dollar Index – bearish (positive for yellow metal)

S&P500- bearish (negative for gold)

US Bond yield- sideways (neutral for gold)

Technical:

The yellow metal is consolidating after hitting a fresh 9-year high at $1898. The near term resistance is around $1900, the violation above will take the pair to the next level till $1921 (All time high). Significant buying only above $1921.

The immediate support is around $1872 (Tenken-Sen), any indicative break beneath targets $1852/$1841/ $1836/$1800/$1774 (23.6% fib).

It is good to buy on dips around $1865-66 with SL around $1855 for the TP at $1900.