FxWirePro: Gold Daily Outlook

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1621.50

Kijun-Sen- $1620.50

Gold has lost more than $70 after forming a temporary top around $1645.The slight improvement in Chinese data and dollar strength is putting pressure on the yellow metal.   China Caixin PMI rose to 50.1 in Mar jumped from 40.3 in Feb.

The number of infected cases due to coronavirus is at 859031, while the U.S crossed 188578, but in Italy, the number of newly infected cases has reduced drastically. The demand for a Safe-haven increase is supporting the yellow metal at lower levels.

DXY declined more than 100 pips from a high of 99.95, any violation below 98.80 confirms minor bearishness.

 US 10-year yield lost more than 15% from a high of 0.73%. The spread between US 10-year and 2-year has narrowed to 39 bps from 70 bps.

Technically, near term support is around $1570 and any violation below will drag the gold down till $1545/$1500.

On the higher side, immediate resistance is around $1600 and indicative break above will take the gold till $1625/$1645.

It is good to buy on dips around $1555-60 with SL around $1530 for the TP of $1645.