Ichimoku Analysis (Daily Chart)
Tenken-Sen- $1707.67
Kijun-Sen- $1717.84
Gold has recovered sharply from low of $1704 and jumped till $1732.90 on a weak US dollar. The risk aversion due to fear of the second wave of coronavirus is the main reason for gold buying at lower levels. DXY has formed a double top around 97.45 and started to decline. Any break below 95.65 confirms bearish continuation.
US Dollar Index – Bearish (Positive for Gold)
S&P500- Slightly bullish (positive for gold)
US Bond yield- strong (mildly negative for gold)
Technical:
The yellow metal is struggling to break above $1745, any violation will take the yellow metal till $1765. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely
The immediate support is around $1721, any indicative break beneath targets $1713/$1708/$1700.
It is good to buy on dips around $1705-06 with SL around $1696 for the TP at $1745.
