FxWirePro: Gold Weekly Outlook

Ichimoku Analysis (Weekly chart)

Tenken-Sen- $1600

Kijun-Sen- $1567

Gold has lost more than $100 pips previous week after hitting a 7-year high. The decline was mainly due to profit booking. The yellow metal was one of the best performers and surged more than 10% after the outbreak of coronavirus. The US has confirmed the new case of the virus in Chicago and the first death in Washington State. More than 87000 people got infected with more death in Iran and South Korea. It hits low of $1524 and is currently trading around $1598.

US 10-year is trading weak for the past 4-week and lost more than 40%. The 2-year yield at 0.80%, the lowest level since 2016.

Technically, it is facing strong support at $1580 (7- W EMA) and any close below targets $1563/$1538.

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.