Ichimoku Analysis (4-Hour chart)
Tenken-Sen- $1535
Kijun-Sen- $1528
Gold trading slightly higher for the past 4 trading days and jumped more than $25. The outbreak of coronavirus is supporting prices at lower levels. China has recorded 2656 cases on Sat and the total number of infected people exceeded 37000. It has killed more than 900 and crossed more people than SARS. The yellow metal hits high of $1576.68 and is currently trading around $1574.50.
US 10 year bond yield has recovered more than 2.5% after a more than 7% decline. The spread between US 10- year and 2 years has narrowed to 18.3 bps from 35.7 bps.
The near term resistance is around $1583, any break over targets $1592/$1600. On the flip side, the immediate support is at $1545 and any break will drag the gold underneath till $1535/$1520 likely. Extreme bearishness only under $1535.
It is good to buy on dips around $1565-66 with SL around $1555 for the TP of $1583/$1592.
