FxWirePro: Gold Daily outlook
Ichimoku Analysis (Daily Chart)
Gold recovered sharply after hitting a low of $1939 on a weak US dollar. The US dollar index declines and hits 26.5 months low after dovish Fed policy. The central bank more stimulus for revival of the economy might drag the US dollar further down. The US GDP declined to -32.9% annualized slightly better than the estimate and continuing claims rose above 17 million.
US Dollar Index – bearish (positive for yellow metal)
S&P500- weak (negative for gold)
US Bond yield- weak (positive for gold)
The yellow metal has formed an ascending triangle pattern in the hourly chart. Any violation above $1980 confirms further bullishness. A jump till $2000/$2025 possible.
The immediate support is around $1939, any indicative break beneath targets $1900/$1859.
It is good to stay away markets are overbought zone.