Ichimoku Analysis (Daily Chart)
Tenken-Sen- $1552
Kijun-Sen- $1541
Gold hs recovered slightly from low of $1546.40 yesterday. But strong uptrend in global stock markets is putting pressure on the yellow metal. The coronavirus has spread more than 20 countries and it might impact the economic growth of China. The buying in gold is expected at lower levels as demand for Safe-haven assets will increase.
US 10 year bond yield is trading lower for 3rd consecutive days and lost more than 5%. The spread between US 10- year and 2 years has narrowed to 23.9 bps from 35.7 bps.
The near term resistance is around $1568, any break over targets $1574/$1582. On the flip side, the immediate support is at $1546 and any break will drag the gold down till $1540/$1536 likely. Extreme bearishness only below $1537 (21- day MA).
It is good to buy on dips around $1550-51 with SL $1545 for the TP of $1568/$1574.
