FxWirePro: Buy Gold on dips

Ichimoku Analysis (4-hour Chart)

Tenken-Sen- $1857

Kijun-Sen- $1836

Gold recovered sharply after showing a minor decline till $1846.The escalation of trade tension between the US and China is supporting the yellow metal at lower levels. The US existing home sales jumped sharply more than 20.7% in June from May, the largest monthly gain since realtors. DXY continues to trade lower, break below 94.65 confirms significant trend continuation. It is currently trading around 94.83. Globally total number cases reached 15.38 million, with deaths around 630355.

US Dollar Index – bearish (positive for yellow metal)

S&P500- bullish (positive for gold)

US Bond yield- sideways (neutral for gold)

Technical:

The yellow metal's near term resistance is around $1876, the violation above confirms bullish continuation. A jump till $1890/$1900 likely

The immediate support is around $1857 (Tenken-Sen), any indicative break beneath targets $1841/ $1836/$1800/$1774 (23.6% fib).

It is good to buy on dips around $1865-66 with SL around $1855 for the TP at $1900.