FxWirePro: Gold Daily Outlook

Ichimoku Analysis (4-hour Chart)

Tenken-Sen- $1684

Kijun-Sen- $1683.50

 Gold futures are trading flat after hitting year high at $1742. The decline in several new infected cases and surge in the global stock market is preventing yellow metal from further upside. US markets especially, Dow Jones rallied more than 3% and closed above 23000. 

US 10-year yield has lost more than 5% from high of 0.784% and spread between US-2 and 10-year widened to 49 bps from 35 bps. 

The total number of people infected due to coronavirus rose to 1518773 with the U.S is in the top with 430128 and three major European economies like Spain, Italy, Germany, and France at 148220,139422 and 113296 and 112950.

On the flip side, near term support is at $1575 and any violation below will drag the yellow metal down till $1560/$1518.

The immediate resistance is around $1700 and any indicative break above targets $1725/$1740.

It is good to buy on dips around $1670 with SL around $1650 for the TP of $1740.