FxWirePro: Gold trades higher on weak US dollar, good to buy on dips

Ichimoku Analysis (Weekly Chart)

Tenken-Sen- $1480

Kijun-Sen- $1469.25

Gold is trading higher in the previous week and jumped more than $35 on US dollar bleeding.  US dollar index has lost more than 100 pips after a jump till 97.82. Any break below 96.50 confirms bearish continuation and a dip till 96 is possible. The yellow metal hits 2-month high around $1515.76 and is currently trading around $1514.57.

US 10- year bond yield is trading flat for the past 1-week after hitting high of 1.95%. It has formed a minor bottom around 1.428% and jumped more than 35%. The spread between US 10 and 2-year has widened to 28 bps from 12 bps one month earlier.

The pair is trading well above the psychological resistance at $1500. The near term resistance is around $1516, beyond that level will take the gold till $1525/$1555 is possible.

On the flip side, nearby significant support is around $1477 (5- W MA) and any violation underneath will drag the gold down till $1463/$1473/$1456/$1449.

It is good to buy on dips around $1500 with SL $1480 for the TP of $1555