Ichimoku analysis (Hourly chart)
Tenken-Sen- $1829.26
Kijun-Sen- $1829.26
Gold recovered more than $10 from a low of $1819 on a slight increase in risk sentiment. The surge in new coronavirus cases and restrictions in Germany is supporting the yellow metal at lower levels. The decline in US 10 year real yield by 9 basis point to -0.98% is capping further downside in gold. DXY continues to trade below 91, violation above 91.50 confirms minor trend reversal.
Economic data:
With no major economic data for the day, markets eye Brexit and U.S stimulus for further direction.
Technical:
It is facing strong resistance at $1850, minor bullishness only above that level. Surge beyond targets $1875/$1900.On the lower side, near term support is around $1822, any indicative break below that level will take till $1800/$1765.
It is good to buy on dips around $1825-26 with SL around $1816 for the TP of $1870/$1900.
