FxWirePro: Buy Gold on dips

Ichimoku Analysis (4-hour Chart)

Tenken-Sen- $1720

Kijun-Sen- $1700

 Gold has once again declined after hitting a high of $1735. The surge in the US dollar index is putting pressure on yellow metal at a higher price. The major factors to be watched are

Coronavirus

The total number of people infected due to coronavirus rose to 2725920 with the U.S is in the top with 886709 and four major European economies like Spain, Italy, Germany, and France at 213024,189973, 158183 and 153219.

US Market:

US stocks especially Dow Jones and S&P500 lost more than 2.5% due to increasing Coronavirus.

Bond Yield

US 10-year yield has shown a minor recovery of more than 5% from a low of 0.568%. The spread between US-2 and 10-year narrowed to 37bps from 72 bps. 

Technicals:

On the flip side, near term support is at $1695 (55- 4H EMA), and any violation beneath will drag the yellow metal down till $1665/$1646/$1625.

The immediate resistance is around $1740, any indicative break beyond targets $1760/$1799.

It is good to buy on dips around $1695-$1700 with SL around $1680 for the TP of $1750.