Gold is consolidating between $1554 and $1455 for the past 1- week. The yellow metal suffered a severe loss from a high of $1703.82 on account of a strong US dollar. DXY surged sharply, hits 3-year high on safe-haven demand due to coronavirus. The number of people infected due to coronavirus increased to 335000 and the death toll rose to 14632. The spread of coronavirus is expected to support gold at lower levels.
US 10-year yield has lost more than 35% from minor top 1.276% and spread between US 10-year and 2-year has narrowed to 50 bps from 70 bps.
Technically, near term support is around $1450 and any violation below will drag the gold down till $1430/$1400.
On the higher side, immediate resistance is around $1520 and indicative break above will take the gold till $1535/$1555.
It is good to sell on rallies around $1515-20 with SL around $1505 for the TP of $1430.
