Ichimoku analysis (8-hour)
Tenken-Sen- $1578
Kijun-Sen- $1570
Gold continues to trade higher and jumped more than $20 from a low of $1581. The outbreak of coronavirus has increased the demand for safe-haven assets like the gold, yen. The total number of people died has increased to 2000 and the number of infected cases crossed 75000.
The US 10 year bond yield has halted its 1 -week of the bullish trend and trading weak for the past 3 days after forming a top around 1.64%. The spread between US 10- year and 2 years has narrowed to 14 bps from 27 bps.
The near term resistance is around $1611 (Jan 8th high), any violation over targets $1625/$1640. On the flip side, the immediate support is at $1591 (23.6% fib) and any breach will drag the gold underneath till $1578/$1555 likely. Extreme bearishness only under $1535.
It is good to buy on dips around $1580-81 with SL around $1570 for the TP of $1640.
