Ichimoku analysis (Daily chart)
Tenken-Sen- $1824.750
Kijun-Sen- $1865
Gold has shown a minor recovery from a five-month low on short covering. US Treasury Secretary Mnuchin urged to use $455 billion from CARES act as a stimulus to U.S economy. The hopes of stimulus are supporting the yellow metal at lower levels. But Moderna claims 100% effective against Coronavirus and seeks emergency clearance in the US and EU. The vaccine optimism might put pressure on gold at higher levels. DXY continues to trade below 92 levels, any violation below 91.50 targets 91. Short term trend is still on the weaker side as long as resistance $1800 holds.
Technical:
The intraday resistance to be watched is $1788, any violation above targets $1800/$1826/$1841/$1860.On the lower side, near term support is around $1760 and any indicative break below that level will take till $1748/$1725.
It is good to sell on rallies around $1795-97 with SL around $1815 for the TP of $1748.
