FxWirePro: Gold Weekly Outlook

Ichimoku Analysis (Weekly chart)

Tenken-Sen- $1577

Kijun-Sen- $1574

Gold was trading extremely higher the previous week and jumped more than $150 from low of $1482.70. The number of infected cases due to coronavirus crossed 7 lakhs, the especially U.S surged past 1 lakh. The demand for a Safe-haven increase is supporting the yellow metal. 

DXY continues to trade weak and lost more than 250 pips till 98.27. Any violation above 98.85 confirms minor bullishness, a jump till 99.25/99.60 likely.

 US 10-year yield is trading weak and declined more than 25%. The spread between US 10-year and 2-year has narrowed to 39 bps from 70 bps.

Technically, near term support is around $1599 and any violation below will drag the gold down till $1578/$1545.

On the higher side, immediate resistance is around $1640 and indicative break above will take the gold till $1660/$1700.

It is good to buy on dips around $1600-05 with SL around $1580 for the TP of $1700.

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