Ichimoku Analysis (Daily chart)
Tenken-Sen- $1729
Kijun-Sen- $1718
Gold has once again gained above $1700 due to unrest in Hong Kong has increased demand for Safe-haven. China proposed national security law in Hong Kong, which will destroy freedom enjoyed by them. The yellow metal hits low of $1694 and shown a recovery till $1715. But a strong global stock market due to hopes of the COVID-19 vaccine might cap upside. It is currently trading around $1715.
US Dollar Index – Bearish (positive for Gold)
S&P500- Bullish (Negative for gold)
US Bond yield- slightly bullish (negative for gold)
Technicals:
The yellow metal took support near 23.6% fib and broken resistance $1716 (21- day MA). The near-term support is around $1690 and violation below will drag it down till $11680/$1671.
The immediate resistance is around $1726, any indicative break beyond targets $1740/$1755/$1765. Significant trend continuation can be seen only if it surges past $1765, a jump till $1800 likely.
It is good to buy on dips around $1702-04 SL around $1690 for the TP at $1740.
