Ichimoku analysis (Daily chart)
Tenken-Sen- $1735.94
Kijun-Sen- $1735.32
Gold continues to trade flat for the past five days. The slight cool-off in US bond yield after hitting a multi-year high is supporting the yellow metal at a lower price. US dollar index is struggling to close above 92 levels, significant trend continuation only if it surges past 92.50 level. The second wave of coronavirus cases in European countries and the extension of lockdown in Germany is preventing gold from further fall.
Economic data:
With no major economic data today, the market eyes US Fed chairman Powell's testimony on the quarterly CARES act before the House of Financial Services Committee.
Technical:
It is facing strong support at $1725, violation below targets $1714/$1700/$1685. On the higher side, near-term resistance is around $1745, any indicative break above that level will take till $1760/$1783.
It is good to buy on dips around $1718-19 with SL around $1700 for the TP of $1760.
