FxWirePro- Gold Daily outlook

Ichimoku analysis (4-Hour chart)

Tenken-Sen- $1759.51

 Kijun-Sen- $1758.28

Gold is trading flat ahead of US nonfarm payroll data. The US economy is expected to add 490000 jobs in Sep compared to 235000 previous months. Any disappointing numbers will push the yellow metal higher to the $1800 level. The US dollar index is holding well above the 94 levels. Any surge past 94.50 confirms a bullish continuation. The overall trend is still on the downside as long as resistance $1835 holds.

Economic Data-

The number of people who have filed for unemployment benefits has fallen drastically to 326000 last week compared to an estimate of 345000.

The factors dragging the gold prices are

USDJPY-

The yen and gold are 90% positively correlated to each other. USDJPY is holding above 111.50 on risk-on mood and surging US treasury yield.

Technical:

The immediate resistance is around $1770 and a convincing break above will take the yellow metal to $1787/$1800. It is facing strong support at $1750, violation below targets $1740/$1720.

It is good to wait till US nonfarm payroll data.