Ichimoku Analysis (Daily Chart)
Tenken-Sen- $1559.98
Kijun-Sen- $1557
Gold has recovered more than $15 as coronavirus spreading fast in Asia. The outbreak of the virus has increased global uncertainties which might affect global growth. The demand for Safe-haven assets is expected to increase in the coming months. It hits high of $1567.50 and is currently trading around $1561.57.
US 10 year bond yield has shown a minor recovery of more than 1.5%. The spread between US 10- year and 2 years has narrowed to 22.4 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.
