Ichimoku analysis (Daily chart)
Tenken-Sen- $1760.37
Kijun-Sen- $1737.85
Gold continues to trade higher for second consecutive days and surged more than $30 on US bond yield weakness. The US 10-year bond yield has lost more than 13% from the minor top 1.77%. The sell-off in the US dollar also supporting the yellow metal. DXY declined after a minor recovery to 91.42. A dip to 90.60 is possible. Markets eye European Central bank monetary policy for further direction. The surge in coronavirus cases and new lockdown in major countries has increased demand for safe-haven assets like gold. The yellow metal hits an intraday high of $1797.95 and is currently trading around $1794.72.
Technical:
The yellow metal is holding above 200-day EMA at $1792.19 and any violation above $1802 (100-day MA) confirms further bullishness. A jump till $1817/$1830. On the lower side, near–term support is around $1763, violation below targets $1751/$1740/$1730. Significant trend continuation only below $1675.
It is good to buy on dips around $1775-76 with SL around $1760 for the TP of$1817.
