Ichimoku analysis (8-hour)
Tenken-Sen- $1584
Kijun-Sen- $1581
Gold is trading highly volatile and lost nearly $20 on the slight recovery in the global stock market. China has recorded 2590 cases on Feb 1st and the total number of infected people exceeded 17000. A lot of countries have blocked airline services to China. The spread of coronavirus is supporting the demand for Safe-haven assets like yen, gold at lower levels. The yellow metal hits an intraday low of $1573.96 and is currently trading around $1576.59.
US 10 year bond yield is trading weak for the past 2-week and lost more than 11% from high of 1.69%. The spread between US 10- year and 2 years has narrowed to 19 bps from 35.7 bps.
The near term resistance is around $1588, any break over targets $1600/$1611. On the flip side, the immediate support is at $1565 and any break will drag the gold underneath till $1555/$1545 likely. Extreme bearishness only under $1530.
It is good to buy on dips around $1565 with SL around $1555 for the TP of $1600/$1611.
