FxWirePro: Gold Weekly Outlook
Ichimoku analysis (Weekly chart)
Gold is holding above $1800 levels despite the strong US dollar. The US dollar has shown a minor pullback from a low of 92.53. Any breach above 93.20 confirms further bullishness. Markets eye US Fed monetary policy and GDP data for further direction. The yellow metal has an intraday high of $1807 and is currently trading around $1806.10.
The central bank has kept its rates unchanged as expected. It has allowed inflation to overshoot and revised its forward guidance on interest rates. The number of people who have filed for jobless benefits in the US surged to 419k for the week ended July 16th compared to a forecast of 350K.
Factors to watch for gold price action-
Global stock market- Slightly bullish (negative for gold)
US dollar index – Slightly bullish (negative for gold)
US10-year bond yield- weak (positive for gold)
It is facing strong support at $1790 violation below targets $1780/$1765. Significant trend continuation only below $1675. On the higher side, near-term resistance is around $1805, any convincing break above will take the yellow metal $1825/$1835/$1860/$1900 is possible.
It is good to sell on rallies around $1810-11 with SL around $1825 for TP of $1750.