Ichimoku Analysis (Weekly Chart)
Tenken-Sen- $1530
Kijun-Sen- $1506
Gold continues to trade high for 3rd consecutive week as the coronavirus death toll in China has increased to 80 and 2744 cases confirmed. The sell-off in riskier assets came after a surge in the spread of the virus to the US, Thailand, Mongolia and South Korea. It hits a high of $1588 and is currently trading around $1.
US 10 year bond yield is trading weak for the past 2-week and lost more than 14% from temporary top 1.90. The spread between US 10- year and 2 years has narrowed to 19 bps from 35.7 bps.
The near term resistance is around $1583, any break over targets $1600/$1611. On the flip side, the immediate support is at $1560 and any break will drag the gold down till $1545/$1536 likely. Extreme bearishness only below $1530.
It is good to buy on dips around $1570-71 with SL $1560 for the TP of $1600/$1611.
