Ichimoku Analysis (Weekly Chart)
Tenken-Sen- $1599
Kijun-Sen- $1596
Gold recovered a sharply previous week after hitting a low of $1661. The increase of several cases in coronavirus is supporting the yellow metal at lower levels. The major factors to be watched are
Coronavirus
The total number of people infected due to coronavirus rose to 2994960 with the U.S is in the top with 987322 and four major European economies like Spain, Italy, Germany, and France at 226629,197675, 162100 and 157770.
US Market:
US stocks especially S&P500 is consolidating after hitting high of 2890. Any violation above 2900 will take the index till 2930/2945.
Bond Yield
US 10-year yield has shown a minor recovery of more than 25% from a low of 0.51%. The spread between US-2 and 10-year narrowed to 38.2bps from 72 bps.
Technicals:
On the flip side, near term support is at $1665 (5 W-MA), and any violation beneath will drag the yellow metal down till $1633/$1596/$560.
The immediate resistance is around $1740, any indicative break beyond targets $1760/$1799.
It is good to buy on dips around $1675-80 with SL around $1660 for the TP of $1740.
