Ichimoku Analysis (4-hour chart)
Tenken-Sen- $1586.78
Kijun-Sen- $1603.43
Gold is consolidating in a narrow range between $1600 and $1572 for the past two trading days. The yellow metal is struggling to trade above $1625 (trend line resistance) and $1640 level. The slight recovery in the US dollar index from a low of 98.27 is putting pressure on gold at higher levels.
The number of infected cases due to coronavirus is at 936000, while the U.S crossed 2 lakh and total death 5110. The demand for a Safe-haven increase is supporting the yellow metal at lower levels.
US 10-year yield lost more than 20% from a high of 0.73%. The spread between US 10-year and 2-year has narrowed to 36.8 bps from 70 bps.
Technically, near term support is around $1570 and any violation below will drag the gold down till $1545/$1500.
On the higher side, immediate resistance is around $1600 and indicative break above will take the gold till $1625/$1645.
It is good to buy on dips around $1555-60 with SL around $1530 for the TP of $1645.
