FxWirePro: Gold Daily Outlook

Ichimoku Analysis (Daily chart)

Tenken-Sen- $1626

Kijun-Sen- $1618

Gold has shown a minor recovery of nearly $50 from minor bottom $1563. The yellow metal declined more than 7% from 7-year high $1685. But overall trend is still on upside as outbreak coronavirus has increased demand for Safe-haven assets like yen, gold. its low of $1524 and is currently trading around $1598.

US 10-year surged more than 10% after a massive sell-off. The spread between 10 and 2-year yield narrowed to 25 bps from 34 bps. According to the CME FedWatch tool, the probability of 50 bps rate cut increased to 100% from 94.9% and 25 bps cut decreased to 0% from 5.1%.

Technically, it is facing strong support at $1567 (7- W EMA) and any close below targets $1537/$1522.

The immediate resistance is around $1610, an indicative break above will take the yellow metal till $1626/$1635/$1660.

It is good to buy on dips around $1570-75 with SL around $1550 for the TP of $1685.