FxWirePro: EUR/JPY slips below daily cloud, better-than-expected EU Consumer Confidence indicator fails to impress
FxWirePro: Gold hits fresh all-time high on negative US real yield, good to buy on dips
Ichimoku Analysis (Daily Chart)
Gold continues to trade higher and hits fresh all-time high at $2055 on weak US dollar and negative US real yield. The weak ADP employment data has dragged the US dollar lower. US private companies have added 167000 much worst compared to a forecast of 1200K. The US 10-year inflation-adjusted yield is at -1.06% vs -1.02% on Aug 3rd. Gold and US real yields are inversely proportional and this confirms that gold to trade further higher in the coming months.
US Dollar Index – Bearish (positive for yellow metal)
S&P500- Positive (negative for gold)
US Bond yield- weak (positive for gold)
The yellow metal hits an all-time high at $2055 and shown a minor profit booking. It is currently trading around $2042.
The immediate support is around $2032, any indicative break below targets $2015/$2000/$1969 (200-H MA). The near term resistance is at $2055, violation above will take the commodity to next level $2077/$2100.
It is good to buy on dips around $2015 with SL around $1998 for the TP of $20.