Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1663
Kijun-Sen- $1668
Gold is trading weak and lost nearly $40 yesterday as risk appetite slightly improved. US markets surged nearly 5% with Dow Jones 25018 (4.89%) ,S&P500 2882 (4.94%) and Nasdaq 8344 (4.94%) higher. The demand for precious metals is expected to rise due to the outbreak of coronavirus and rate cut by major central banks. It hits a low of $1641.718 and is currently trading around $1657.38.
US 10-year yield has shown a nice recovery of more than 100% from an all-time low of 0.36%. The spread between 10 and 2-year has widened to 26 bps from 11.9 bps.
On the flip side, near-term support is around $1635 and any violation below will drag the gold down till $1626/$1616.
The immediate resistance is at $1668 and any indicative break above $1675/$1685.
It is good to sell on rallies around $1673-75 with SL around $1685 for the TP of $1626.
