FxWirePro: Gold Weekly Outlook

Ichimoku Analysis (Weekly chart)

Tenken-Sen- $1530.80

Kijun-Sen- $1506.50

Gold is trading slightly flat after minor recovery till $1562.02 on declining bond yield. The yellow metal has lost more than $80 as the US and China signed a phase one trade deal on Jan 15th. This has decreased demand for Safe-haven assets like yen and Swiss Franc. It is currently trading around $1555.

US housing starts surged sharply by 17% to 1.61 million compared to 1.375 million in Nov, the highest level in 13 years. US 10 year bond yield has halted its 1-week of bearishness and jumped more than 4% form low of 1.776%. The spread between US 10- year and 2 years has narrowed to 25.9 bps from 35.7 bps.

The near term resistance is around $1575, any break over targets $1588/$1600. On the flip side, the yellow metal has taken support near-daily Kijun-Sen at $1536 and any break will drag the gold down till $1518/$1500 likely.

It is good to sell on rallies around $1562-63 with SL $1574 for the TP of $1537/$1520