FxWirePro- Gold Weekly Outlook

Ichimoku analysis (Weekly chart)

Tenken-Sen- $1799.44

Kijun-Sen- $1797.88

Gold continues to trade weak due to the rebound in the US dollar. The US dollar index is trading higher for a fifth consecutive week in hopes of a rate hike by the Fed. The minor pullback in US treasury yield also puts pressure on the yellow metal. It hits a low of $1838.85 and is currently trading around $1844.15.

Economic Data-

US retail sales surged for the third consecutive month. It rose 1.7% in Oct compared to the forecast of 1.4%. The number of people who have filed for unemployment benefits for the week ended dropped by 1000 to 268000 previous weeks compared to forecast of 260000. US Philly fed manufacturing index rose to 39 in November vs. an estimate of 23. 

 Factors to watch for gold price action-

 Global stock market- Slightly Bearish (Positive for gold)

US dollar index –Bullish(Negative for gold)

US10-year bond yield- Bullish (Negative for gold)

Technical:

It faces strong support at $1838, violation below targets $1820/$1798/$1780. Significant trend continuation only below $1675. The yellow metal facing strong resistance $1860, any breach above will take to the next level $1875/$1900/1915 is possible.

It is good to sell on rallies around $1848-50 with SL around $1860 for TP of $1800.