Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1571
Kijun-Sen- $1562
Gold is trading in a narrow range between $1560 and $1577 for the past 3 trading days. The number of death in China has crossed 1000 and the total number of infected people to 42638. The yellow metal hits a high of $1566 and is currently trading around $1568.
US 10 year bond yield has recovered more than 2.5% after a more than 8% decline. The spread between US 10- year and 2 years has narrowed to 17 bps from 35.7 bps.
The near term resistance is around $1583, any break over targets $1592/$1600. On the flip side, the immediate support is at $1545 and any break will drag the gold underneath till $1535/$1520 likely. Extreme bearishness only under $1535.
It is good to buy on dips around $1555 with SL around $1545 for the TP of $1583/$1592.
