FxWirePro: Gold Weekly Outlook

Candlestick pattern- Long-legged Doji

Ichimoku Analysis (Weekly Chart)

Tenken-Sen- $1599

Kijun-Sen- $1596

 Gold has lost more than $70 from a previous week of high $1747 on a slight surge in the global stock market. It hits a low of $1671.60 at the time of writing. The major factors to be watched are

Coronavirus

The total number of people infected due to coronavirus rose to 2407414 with the U.S is in the top with 764265 and four major European economies like Spain, Italy, Germany, and France at 198674,178972, 152894 and 145742.

US Market:

US stocks especially Dow Jones and S&P500 is trading higher for the past 2 days. It has jumped more than 5%.

Bond Yield

US 10-year yield is trading weak for the past 5 days and declined more than 25%. The spread between US-2 and 10-year narrowed to 42bps from 72 bps. 

Technicals:

On the flip side, near term support is at $1670 and any violation below will drag the yellow metal down till $1660/$1518.

The immediate resistance is around $1700, any indicative break above targets $1725/$1740.

It is good to buy on dips around $1670 with SL around $1650 for the TP of $1740.