FxWirePro: Gold Daily outlook
Ichimoku Analysis (Daily Chart)
Gold is trading flat after hitting an all-time high of $1986. The upbeat US ISM manufacturing has pushed the U.S dollar index slightly higher to 93.99. The US ISM manufacturing index came at 54.2% in Jul compared to a forecast of 53.6. The US real yield on US treasuries hits record low -1.02% from 0.08% in Jan. Gold and US real yields are inversely proportional and this confirms that yellow metal to cross $200 level soon.
US Dollar Index – Bearish (positive for yellow metal)
S&P500- Positive (negative for gold)
US Bond yield- weak (positive for gold)
The yellow metal lost more than $20 from high and any violation below $1960 confirms further bearishness. A decline till $1940/$1907 is possible.
The immediate resistance is around $2000, any indicative break beyond targets $2025/$2050.
It is good to buy on dips around $1920-25 with SL around $1900 for the TP of $1995.