FxWirePro: Gold Weekly Outlook
Candlestick pattern- Hammer
Ichimoku Analysis (weekly chart)
Gold showed a nice recovery of more than $50 from a low of $1693.80. The sell-off in the US dollar and stimulus program of various Central banks are supporting the yellow metal at lower prices. DXY has closed below 200-day MA for 2 consecutive days and any violation below 97.80 (61.8% fib) will drag the index down till 97.40/97. The yellow metal hits a high of $1740.74 at the time of writing and is currently trading around $1737.77.
US economic data
US Durable goods orders plunged sharply to -17.2% in Apr, most since Aug2014. The number of people filed for unemployment claims came at 2123K in the previous week, the lowest level since the corona pandemic. US personal spending declined to record 16% in Apr MOM as the savings rate increased by 33%.
US Dollar Index – Bearish (positive for Gold)
S&P500- bullish (negative for gold)
US Bond yield- Weak (positive for gold)
The yellow metal has broken 1-week high $1740 and is hovering around that level. The overall trend is bullish as long as support $1691 (23.6% fib) holds. Any violation below will drag it down to $1680/$1671.
The immediate resistance is around $1741, any indicative break beyond targets $1755/$1765. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely.
It is good to buy on dips around $1725-26 SL around $1718 for the TP at $1764.