FxWirePro: Gold trades weak on strong US dollar, good to sell on rallies tec
Ichimoku Analysis (Daily Chart)
Gold declined more than $30 after a minor jump till $2049 yesterday. The strong US dollar and jump in US yield is putting pressure on yellow metal at higher levels. US dollar index is trading in a narrow range and violation above 94 confirms further bullishness. The US 10-year inflation-adjusted yield is at -1.02% vs -1.08% on Aug 6th. Gold and US real yields are inversely proportional and this confirms that gold to trade further higher in the coming months.
US Dollar Index – Bullish (negative for yellow metal)
S&P500- Positive (negative for gold)
US Bond yield- Positive (negative for gold)
The yellow metal is trading slightly weak after hitting an all-time high at $2074. It is currently trading around $2019.89.
The immediate support is around $2015, any indicative break below targets $2000/$1980. The near term resistance is at $2050, violation above will take the commodity to next level $2075/$2100.
It is good to sell on rallies around $2028-30 with SL $2050 for the TP of $1910.