Ichimoku Analysis (Weekly Chart)
Tenken-Sen- $1713
Kijun-Sen- $1608
Gold showed a massive recovery of more than $50 from the previous week's low of $1704. The increase in the number of new coronavirus cases, especially in the U.S has increased demand for Safe-haven assets like gold, yen. The U.S has reported more than 30000 new cases on Friday and Saturday. The centers for Disease Control and Prevention forecasts between 129000 and 145000 COVID- 19 deaths by Jul.
US Dollar Index – bullish (Negative for Gold)
S&P500- Slightly- Weak (Bullish for gold)
US Bond yield- Weak (mildly positive for gold)
Technical:
The yellow metal has broken significant resistance $1745 and jumped till $1758.70. Major trend continuation is possible if it surges past $1765, a jump till $1800 likely
The immediate support is around $1740, any indicative break beneath targets $1729/$1716/$1700.
It is good to buy on dips around $1745-46 with SL around $1730 for the TP at $1800.
