FxWirePro- Gold Daily Outlook

Ichimoku analysis (4-hour chart)

Tenken-Sen- $1854.78

Kijun-Sen- $1840.06

Gold is trading flat after a huge surge of more than $50 this week. The upbeat US inflation data has increased hopes of rate hikes by the Fed. The US dollar index surged sharply and hits the highest level since June 2020. The jump in US treasury yield also puts pressure on the yellow metal at higher levels. Gold hits an intraday high of $1862.45 and is currently trading around $1856.79.

Factors to watch for gold price action-

 Global stock market- Slightly bullish (negative for gold)

US dollar index –Bullish (Negative for gold)

US10-year bond yield- Bullish (negative for gold)

Technical:

It faces strong support at $1800 violation below targets $1780/$1760/$1750$1740. Significant trend continuation only below $1675. The yellow metal is facing resistance at $1835, any break above will take the yellow metal to $1860. The major bullish trend after it breaks $1835.

It is good to sell on rallies around $1859-60 with SL around $1870 for TP of $1802.