FxWirePro: Gold Daily Outlook

Ichimoku analysis (Daily chart)

Tenken-Sen- $1864

Kijun-Sen- $1898

Gold has broken significant support at $1850 and closed below that level on an upbeat market mood.  The US is expected to start its Covid vaccinations by Dec 11th. The minor jump in the US dollar index is also putting pressure on the yellow metal. Short term trend is still on the weaker side as long as resistance $1900 holds.  The dollar index showed a minor jump till 92.80, major trend reversal only above 93.20. The US 10-year yield recovered slightly more than 5% after declining more than 15%. 

Economic data:

 US Markit PMI manufacturing came at 56.7 vs estimate 52.50. Markets eye US CB Consumer confidence data for further direction.

Technical:

The intraday resistance to be watched is $1860, any violation above targets $1881/$1900.   On the lower side, near term support is around $1820 and any indicative break below that level will take till $1796/1770.

It is good to sell on rallies around $1838-40 with SL around $1860 for the TP of $1800.