FxWirePro: Gold trades flat, major bullishness only above $1590

Ichimoku Analysis (4-hour chart)

Tenken-Sen- $1568.04

Kijun-Sen- $1568.04

Gold is trading in a narrow range between $1560 and $1577 for the past 3 trading days. The major factors affecting the yellow metal are

Global stock market- US markets hit a fresh all-time high with Dow Jones and S&P500 closed at 29551 and 3379 respectively. But US stock futures declined as several coronavirus cases spiked in Hubei province.

Coronavirus: According to health officials in China Hubei province, the total number of death increased by 242 to 1310, infected people rose to 14840 in Hubei alone.

US 10 year bond yield has lost more than 2.5% from recent high 1.64%. The spread between US 10- year and 2 years has narrowed to 17.7 bps from 35.7 bps.

The near term resistance is around $1583, any break over targets $1592/$1600. On the flip side, the immediate support is at $1545 and any break will drag the gold underneath till $1535/$1520 likely. Extreme bearishness only under $1535.

 It is good to buy on dips around $1568 with SL around $1560 for the TP of $1592/$1600.