Ichimoku Analysis (4 Hour chart)
Tenken-Sen- $1571.52
Kijun-Sen- $1570.27
Gold has lost more than $30 on a rebound in global stock markets. US markets especially S&P500 jumped more than 1.5% from low of 3236. The yellow metal was one of the best performers in the past 5 days after the outbreak of coronavirus. Chinese health officials said that the death toll has increased to 132, the number of cases rose to 5974. It hits low of $1556 and is currently trading around $1564.50.
The US Conference Board consumer confidence came at 131.6 in Jan, the highest level in 5 months. The durable goods orders surged 2.4% in Dec vs forecast of 1.2%.
US 10 year bond yield has halted its 1-week of bearishness and shown a nice recovery of more than 6%. The spread between US 10- year and 2 years has narrowed to 18.8 bps from 35.7 bps.
The near term resistance is around $1574, any break over targets $1588/$1600. On the flip side, the immediate support is at $1545 and any break will drag the gold underneath till $1536/$1530 likely. Extreme bearishness only under $1530.
It is good to buy on dips around $1550 with SL $1540 for the TP of $1600/$1611.


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