Chart pattern- Cup and handle
Ichimoku analysis (Hourly chart)
Tenken-Sen- $1856.72
Kijun-Sen- $1856.72
Gold surged sharply more than $20 on broad-based US dollar selling. US dollar index is trading extremely weak and hits the lowest level since Apr 2018. The hopes of a stimulus package and Brexit uncertainty are supporting yellow metal at lower levels. US Fed has maintained its rates unchanged and voted to continue the monthly bond purchase of $120 billion.
Economic data:
The US retails sales declined for the second consecutive months and dropped by -1.1% in November compared to a forecast of -0.3%. US flash manufacturing PMI came at 56.5 vs forecast of 55.90.
Technical:
It is facing strong resistance at $1875, a surge beyond targets $1900.On the lower side, near term support is around $1856, any indicative break below that level will take till $1844/$1828.
It is good to buy on dips around $1860 with SL around $1850 for the TP of $1900.
